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Binance Halts Operations Due to Syscoin Blockchain Being Compromised

News
Wed, 07/04/2018 - 08:48
  • Earlier this morning one Syscoin was sold for 96 BTC, Binance suspends trading

Cover image via U.Today

Early on July 4, news came that a single Syscoin suddenly rose in value by almost 40 percent after one token was sold for 96 Bitcoins or $6.23 mln.

Something went wrong on the Syscoin network

According to the numerous reports, the situation is that one billion SYS was mined on a single block of the network, although the total planned supply of the currency is set at 888 mln.

The crypto startup is investigating what precisely has happened there but one thing is for certain– the Blockchain was compromised and they requested all exchanges listing SYS to suspend any operations with the coin.

Experts believe that breaking the rules of a coin supply is not something to be achieved by a 51 percent attack, so, most likely, there was been a bug in the protocol itself that was used.

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Binance suspends operations

The exchange has halted withdrawals, depositing and trading caused by system maintenance being underway. However the platform did it right after the SYS token soared over 80 percent due to the aforementioned trade deal against BTC.

Are altcoins still under attack?

A few altcoins suffered 51 percent attacks recently, like Verge and some others. If it turns out that the inflated selling operation on Binance was conducted due to the attack on the Syscoin Blockchain, that will be just another hack aimed at testing altcoins’ and their wallets security flaws.

Besides, Syscoin has already been hacked recently- their GitHub account was compromised.

The good news is- Binance is soon to resume trading along with other exchanges that held SYS trading operations.

 

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today, can be contacted at yuri.molchan@u.today.

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