Sudden spike in trading volume on numerous assets was not natural, but users should not panic
An odd and sudden volume spike on many altcoins There was nothing on the trading platform that most investors would expect during the weekend trading session. Unfortunately, the source of the quantity provided was not natural.
Back in November, numerous users reported a problem: they noticed an occurrence of orders they had not placed on the platform. Someone or something was causing a spike in trading volume on various assets, including AXS, which was not targeted in this case.
Later, Binance CEO CZ confirmed that the issues were not on the exchange’s side. The problem was linked to the leak of a trading API key. Technically, Binance was only following orders from users and there was no problem with its internal systems.
In this case, Binance remains intact, with its core system working normally and without facing any issues. Presumably, the problem is tied to yet another API key leak. According to WuBlockchain, the keys were stolen by hackers, and the issue is related to 3Commas trading bots.
The official Binance account or Changpeng Zhao himself has neither confirmed nor denied the users’ claim. However, the source of the leak may not be tied to any type of security breach. Sometimes, users are unable to properly store their API keys, or they provide them to third parties that do not properly include them.
3Commas has confirmed the issues reported by hundreds of users and stated that old keys that have not been used for more than three months will be revoked. The management team of the platform believes phishing was the case.
3Commas has also confirmed that to the best of their knowledge there were no security or encryption mechanism breaches.
