Binance announced the trading suspension after they received an alert over irregular Syscoin (SYS) trades from several API users. The exchange suspended trading and withdrawals, as well as began taking several other measures to protect its user base.
Syscoin also notified the public via a tweet that said their developers were investigating a possible issue on the Syscoin blockchain. The firm asked exchanges that listed SYS to halt trading while their team investigated.
The company later tweeted that their investigation suggested the SYS blockchain was safe and asked exchanges to reopen trading.
While many details are still undisclosed, the incident appears to have seen Syscoin trades on the Binance platform caused the coin to account for over 87 percent of trades, leading SYS to become the top traded coin on Binance. Market data from Binance indicates that at one point, SYS prices on the platform reached almost $64,000.
Binance reacted quickly to the alert. Aside from suspending trading, the exchange also removed all existing API keys and asked all API users to recreate their keys. The firm stressed that users who are not regular API users shouldn’t create a new API key for now.
The exchange also rolled back all irregular trades, offering any user negatively affected free trading from July 5th to July 14th.
All other users will receive a 70 percent rebate on trading fees throughout the same time period, to be paid out in the exchange’s native crypto token, Binance Coin (BNB)
Finally, Binance also created a ‘Secure Asset Fund for Users’ (SAFU), to be used to protect users and their funds in extreme cases. The fund will allocate 10 percent of trading fees received and will be kept in a segregated cold wallet storage.
According to Coinmarketcap, Binance is the largest Crypto Exchange in the world, with $1.5 billion in trade volume in a 24 hour time period.