Yesterday, the world’s biggest cryptocurrency exchange, Binance suspended withdrawals after a suspected API hack sold off customer coins that sold off customer tokens to purchase an until then unknown coin, VIA, at a massively inflated price.
The current market capitalization of VIA is under $80M. However, the trading in the coin surpassed $185M in the 24 hours before the incident including the suspected attack. Even if the yesterday’s Medium update of VIA could be something to point out, nothing can really explain the dramatic escalation in the VIA price. In effect, the price surged from ~0.00025BTC to ~0.018BTC at one point, an increase of ~7,500%, on Binance. While exact figures vary according to the source, Blockfolio reported a high of $243.73 and a low of $2.19 for the trading day.
While no further details are available, both the official Binance Telegram Group and the Reddit sub posted messages from an admin named “Symbiotic_BNB” that said:
“We are investigating reports of some users having issues with their funds. Our team is aware and investigating the issue as we speak. Please remain patient and we will provide an update as quickly as possible.”
According to confirmed information from third parties of the Crypto Briefing team members, Binance’s withdrawals in several major coins were unavailable.
Speculation focuses on an API breach, as many of the reports of unauthorized sales are coming from commentators who had an API enabled (even if trading through the API was disabled.)
The breach was followed by a flash crash of Bitcoin and all the other alltcoins.
It is worth mentioning that the mod team on Reddit is a disparate group of active Redditors, and persons or accounts with low karma and the Symbiotic_BNB account is only one month old