Binance suspended trading operations today, a few hours after a token on its platform was reported as having irregular transactions.
The token that caused the suspension is issued by Syscoin, a distributed network based on a fork of the bitcoin protocol. Syscoin reported on Twitter at around 21:00 UTC Tuesday that they noticed a possible issue with their system. The firm then asked exchanges to suspend trading of their SYS token. The firm later confirmed on Twitter that they discovered odd trading behavior, coupled with atypical behavior.
As a precaution we had requested exchanges halt $SYS deposit/withdrawal today after we observed odd trading behavior coupled with atypical blockchain activity. After investigating the #Syscoin blockchain is safe. We are asking exchanges to reopen. Detailed wiki post tomorrow. pic.twitter.com/NEypr531zi
— Syscoin (@syscoin) July 4, 2018
While Syscoin has yet to reveal details on the investigation, the issue may have resulted in unusual transactions of their coin on Binance. This accounted for more than 87 percent of their token’s trading volume.
Price data from Binance shows that at one point, the price of SYS per unit against Bitcoin went up to 96 BTC. Prior to this, SYS maintained a price of around 0.00004 BTC. It is still unclear what caused this to happen.
Several hours after Syscoin’s reveal, Binance said in their blog it stopped all activity on their platform, as they will undergo system maintenance. While the exchange didn’t specify the cause of the operations suspension, they indicated that the maintenance was due to a spate of irregular trading on the platform.
Binance wrote that:
“Due to irregular trading on some APIs, Binance will remove all existing API keys as a precautionary security measure. All API users are requested to recreate their API keys.”
Binance has not responded to requests for a comment on the issue.