Binance, the top-dog of cryptocurrency exchanges was in the cross-hairs of a recent trading attack. During the early hours of September 16, the Malta-based exchange was targeted by a “known,” market maker, who tried to contort Bitcoin Futures trade to make a quick buck.
According to estimates, the “attack” occurred close to midnight on 15 September, based on the overshot wick on the trading charts. The news was officially brought to light by Binance’s CEO, Changpeng Zhao. In a tweet, posted hours after the incident took place. CZ stated that the culprit was from a “small futures exchange,” and his target was the Binance Derivatives trading platform. However, “NO ONE was liquidated,” CZ clarified, justifying the exchange’s use of index price over futures price for liquidations on the exchange, a caveat that he attributed to “our innovation.”
Binance CEO added that despite the goal of the attacker to make some fast and easy cash, the market maker was the only one who “lost a bunch of money.” His tweet read,
A market maker from a smaller futures exchange tried to attack @binance futures platform. 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. pic.twitter.com/ztMZEtYKc6
— CZ Binance (@cz_binance) September 16, 2019
While most attacks, trading or technical, in the cryptocurrency world are more often than not, from an unknown entity, the attacker was known to Binance. Adding on to his aforementioned tweet, CZ stated that the “attacker” is a “well known account that trades with @binance.” Possibly in a bid to check security measure of a top futures platform, the “attacker” founded their own futures exchange “a few months ago,” and this attack was their second.