SYS hacked and sold on Binance!Coin of the day is SysCoin
What is SysCoin
The primary product of the Syscoin team is Blockmarcket, a blockchain powered marketplace "where you can securely and reliably buy and sell any items you wish". They position themselves as a future competitor to Amazon and eBay. Syscoin offers a set of technologies: a global network, a distributed ledger, a decentralized database and a blockchain.
Attack
Yesterday Syscoin was hit by an unusual hack that has manipulated the coin’s total supply. The attackers then sent the fraudulently generated coins to Binance and sold them, pushing the price of 1 SYS to as high as 96 BTC. The BTC they received was then withdrawn, prompting Binance to cease trading temporarily and to reset all APIs, which are believed to have facilitated the attack.
On Thuesday Syscoin blockchain is reported to be severely compromised. Binance and Syscoin Twitter feeds was pointing towards a Syscoin attack.
“We are investigating a possible issue on the Syscoin blockchain, nothing is confirmed but we have asked for exchanges to halt trading while we investigate.”
The most probable scenario of the attack includes stolen API’s which was used to buy-out the whole order book of SysCoin on Binance, and even pushed the price up to the 96 BTC.
User CRNBTC on Twitter noted that one of Binance’s hot wallets have become active again. He said:
“7000BTC moved out of @binance hot wallet after the syscoin api pump. binance has not issued any withdrawals since.”
Binance CEO CZ promised a full post-mortem after the exchange re-enabled trading on Wednesday morning. In an incident recap, Binance has promised to rollback irregular trades and offer zero-fee trading to irregular trading. The exchange tweeted the news accompanied by the #SAFU hashtag, in reference to a rising crypto meme spawned by a previous CZ typo in which he assured users that “funds are safu”. In March, Binance was hit by a similar API-based attack, on that occasion using Viacoin. Using compromised APIs, the attackers set ridiculously high sell orders on the victims’ accounts, dump their illicitly obtained crypto on them and then cash out. Decentraland’s MANA cryptocurrency also soared dramatically on Binance in a move that’s believed to be linked to the Syscoin API attack.
Technicals
There is no need to describe how SYSBTC price looks on the Binance chart. However, this situation triggered bots, which uses price differences among exchanges to get profit, this bots raised the price on Bittrex as well, not to 96 BTC though. The price spike pinched the 0.000055 level and then returned to the 0.000034 – 0.00004 zone. An overall pattern still looks like a rebound from the Bullish Trend Line and stays positive for now with support at the 0.00003 level and Bullish Trend Line and resistances at 0.00004 and 100-days EMA.
