Binance Confirms Bitcoin Futures Market Attack Was an Accident

Binance Confirms Bitcoin Futures Market Attack Was an Accident

The CEO of Binance is facing criticism after wrongly accusing someone of attacking the newly launched bitcoin futures platform.


CZ: No Bitcoin Futures Trader Lost Funds

In an unusual turn of events, a debacle between Changpeng Zhao (CZ) and an unnamed entity ensued over Twitter on September 16.

Zhao originally claimed the party attempted to crash the market serving Binances newly-launched Bitcoin 00 futures product.

Data reveals a sudden dip in the BTC/USD price for the futures order book, which went from $10,324 to $10,024 in seconds on Sunday evening.

A market maker from a smaller futures exchange tried to attack (the Binance) futures platform, he wrote.

NO ONE was liquidated, as we use the index price (not futures prices) for liquidations (our innovation). Only the attacker lost a bunch of money, and that was that.

The identity of the market maker remains a mystery. Zhao nonetheless revealed it was the second time such an event had occurred.

A private exchange with the party then revealed that a technical error was to blame for the event.

Had a chat with the client. It was an accident, due to a bad parameter on their side. Not intentional. All good now, Zhao added.


Binance Coin Wobbles

While officials breathed a sigh of relief, markets remained jittery. Binances in-house token, Binance Coin 00, fell several percents on the news, still trading down at press time at just under $21.

Critics also voiced frustration at Zhao, arguing he should have investigated with the market maker before publicly accusing him of launching an attack and panicking markets. Others conversely commended him over his handling of the event.

Binance has faced various difficulties in recent months as it seeks to expand ever more into bank-style services for the cryptocurrency industry.

As Bitcoinist reported, a hack in May saw Zhao offer a public apology and refund of funds worth $41 million at the time.

A separate scare involved claims a malicious actor had stolen user data; those claims turned out to be unfounded.

This week, Binance will launch its dedicated US trading platform after halting access to its exchange for US residents. Stemming from regulatory problems, the reshuffle nonetheless took its toll on BNB, which has slid almost 50% since its all-time highs in June.

What do you think about Binances Bitcoin futures offerings? Let us know in the comments below!

Images via Bitcoinist Image Library, Twitter: @cz_binance

The post Binance Confirms Bitcoin Futures Market Attack Was an Accident appeared first on Bitcoinist.com.

16.09.2019 / 02:30 69
Binance Successfully Debuts Bitcoin Futures 1 Week Before Bakkt Binance Successfully Debuts Bitcoin
Cryptocurrency exchange Binance has formally launched its Bitcoin futures platform following a user-based testing phase. User-Tested Bitcoin Futures
Binance Open Interest on Futures Testnet Hits $150M USDT in 24hrs Binance Open Interest on Futures
Binance has launched its futures markets in a closed invitation-only mode. Following a testing period on its two futures platforms, the leading
Did Binance Just Blatantly Copy BitMEXs Futures Documentation? Did Binance Just Blatantly Copy
BitMEX has released pretty damning evidence on Twitter today that Binance has plagiarised a vast majority of its bitcoin futures documentation.
Binance Will Pay Users $220K To Test Its Bitcoin Futures Platforms Binance Will Pay Users $220K To Test
Cryptocurrency exchange Binance is planning to pay users to decide how its new Bitcoin futures trading platform should operate. Binance: Two
Binance to Launch Bitcoin (BTC) Futures as LedgerX, ErisX Snag CFTC Licenses Binance to Launch Bitcoin (BTC) Futures
Binance to Launch Futures In a recent keynote, Binance chief executive Changpeng CZ Zhao unveiled a surprising tidbit of news. Speaking to the
Okex Rolls Back Futures Contracts After Liquidations Leave Traders Reeling Okex Rolls Back Futures Contracts After
Okex has promised to roll back futures transactions after irregular activity saw bitcoin plunge to under $4,800. The incident triggered massive
Comments (0)
Add a comment
Comment on