Bitcoin Dips Below $9,500 Briefly, Market Recovers as Binance Hack Refuted

Bitcoin Dips Below $9,500 Briefly, Market Recovers as Binance Hack Refuted

Yesterday, on March 8, the price of bitcoin has dropped below $9,500 briefly, triggered by Binance hack rumors, the Japanese government’s issuance of penalty on local exchanges, and the sell-off of a massive amount of bitcoin by the Mt. Gox trustee.

Binance Hack Rumors Refuted

From over $10,600, the price of bitcoin dropped by more than $1,100 within a span of several hours, reaching $9,400. However, almost immediately after the development team of Binance, the world’s largest cryptocurrency exchange, refuted hack rumors and Changpeng Zhao, the CEO at Binance, released a statement regarding the situation, the market recovered.

Within 10 hours, the price of bitcoin declined from $10,600 to $9,400, and rebounded back to $10,000. The entire cryptocurrency market was extremely volatile during this period, as most major cryptocurrencies like Ethereum and Ripple followed the price movement of bitcoin.

In an official statement, the Binance team stated that hackers obtained the account information of users on the Binance platform through phishing attacks throughout February. Then, with the accumulated accounts, the hackers used a false API key to execute trades on behalf of users, triggering one cryptocurrency pair to spike in volume.

Binance has since reversed all trades, and no losses were recorded. Strangely, only the hackers that attempted to take advantage of Binance users had their funds lost, as Changpeng Zhao noted.

Several analysts have attributed the recent minor correction of the cryptocurrency market to the penalization of Japanese cryptocurrency exchanges for having poor security measures and breaching Anti-Money Laundering (AML) and Know Your Customer (KYC) policies.

Tokyo-based technology reporter Yuji Nakamura revealed that two small-scale cryptocurrency exchanges have been shut down (FSHO and BitStation), four major trading platforms in GMO, Zaif, Bicrements, and Mr. Exchange were penalized, and two licenses were taken away.

Last month, the South Korean government imposed a penalty on cryptocurrency exchanges with poor security measures, as a part of a larger initiative to allow the cryptocurrency market to evolve and grow within a robust ecosystem, protecting investors.

But, the community has had an outsized reaction towards the crackdown on small cryptocurrency exchanges by the Japanese government.

After the CoinCheck $530 million security breach, the Japanese government received many complaints from investors, despite the fact that CoinCheck has decided to refund all users who have lost their funds during the hacking attack.

The recent brief correction was caused by a combination of four factors: Japan’s crackdown on small exchanges, Binance hack rumors, SEC’s announcement to exchanges, and major cryptocurrencies failing to meet key resistance levels.

Featured image from Shutterstock.

08.03.2018 / 06:45 97
Binance Hack Rumors Refuted, Can Bitcoin Price Secure Momentum Again? Binance Hack Rumors Refuted, Can
Cryptocurrency enthusiasts will have noticed the Bitcoin price has taken another stumble. This latest downtrend comes at a rather surprising time.
Cryptocurrency Market Suffers on Binance Hack Fears Cryptocurrency Market Suffers on
Bitcoin sunk beneath the key $10,000 mark to a recent low amidst rumor-mongering of a Binance hack that compromised investor accounts. Nothing Was
Bitcoin slides on SEC crypto exchange crackdown fears and Binance hack rumour Bitcoin slides on SEC crypto exchange
Bitcoin has dropped below $10,000 to $9,500 after a warning from the Securities and Exchange Commission (SEC) about using unregulated exchanges and
Newsflash: Bitcoin Price Sinks 10% amid Binance Hack Rumors Newsflash: Bitcoin Price Sinks 10% amid
Bitcoin price hit a 10-day low of $9,400 (Bitfinex) as major cryptocurrency exchange Binance froze withdrawals due to “unauthorized market sells.”
Possible Hack Of Third-Party Tools Affects Binance Exchange Users Possible Hack Of Third-Party Tools
A possible third-party tool hack has sold off Binancer users Altcoins at market price. Users of Binance, the top cryptocurrency exchange in the world
Cryptocurrency Market Erases Yesterday’s Gain, Ripple Drops 11% Cryptocurrency Market Erases
Yesterday, on March 6, the global cryptocurrency market moved closer to the $500 billion mark, as it peaked at $475 billion. Today, the market
Comments (0)
Add a comment
Comment on