CZ Addresses Concerns Over Investigation Of “Abnormal Price Movements” On Binance

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Changpeng Zhao (CZ), the CEO of Binance, has addressed concerns surrounding the investigation into “abnormal price movements” for some trading pairs on the exchange.

CZ reported that the company had temporarily blocked withdrawals for “some of the profitable accounts” that had caused complaints on social media.

In a statement, CZ said:

“We are aware of the concept of too much platform intervention, “too centralized” attacks, etc. There is a balance on how much we should intervene. Sometimes this happens in the free market and we have to let it play out.”

Binance’s official Twitter account announced that the suspicious activity raising concern on social media did not appear to be caused by hacked accounts or stolen API keys and that the funds are “SAFU.”

However, CoinMamba, a futures trader and cryptocurrency investor, revealed a different perspective on the situation when he stated on Dec. 8 that his Binance account was hacked through an API created two years ago, sent exclusively to 3Commas, a cryptocurrency trading software provider.

CZ responded to CoinMamba, explaining that Binance had “seen multiple cases involving 3Commas” and claims that the users were phishing.

Phishing attacks have been an ongoing issueas seen in October on exchanges like FTX and Binance, where users fell victim to phishing attacks targeting crypto services like 3Commas.

Although CoinMamba dismissed the idea that it was a case of phishing, 3Commas provided a full research blog post of the December 10 API key attacks, describing the modern evolution of phishing.

“Over time, phishing has evolved to incorporate new attack vectors, such as paying to advertise imitation websites at the top of search engines or incorporating malware as part of the attack. Furthermore, phishing is known to target specific groups of people, high net worth individuals or even companies (known as “spear phishing” or “whale phishing”).

Despite 3Commas’ investigative post, concerns around stolen API keys only grew as more Twitter users disclosed losses and described 3Commas as “NOT secure.”

Even Sleuth on-chain, ZachXBT, weighed in on the discussion:

With overwhelming evidence confirming stolen API keys at 3Commas, loss of funds by multiple users, and current API data vulnerability, it is doubtful that the funds are “SAFU”.

Following a Twitter debate between CoinMamba and CZ to its conclusion, a deleted comment by CZ revealed retaliatory comments suggesting the “unplugging” of the Binance accounts of 3Commas and CoinMamba.

On Dec. 9, CoinMamba stated that its Binance account had been closed and received an explanatory response from the Binance customer support Twitter account.

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