Binance Futures Platform Faces Accidental "Attack": Details

Libra Coin News
Mon, 09/16/2019 - 06:09
Alex Dovbnya
Changpeng Zhao accuses someone of attacking Binance Futures, but later finds out that it was an accident
Cover image via

On Sept. 16, Binance CEO Changpeng Zhao took to Twitter to inform his followers that somebody attacked the exchange’s futures platform.

Meet "BUSD": Crypto Exchange Binance Rolls Out Its Own USD-Backed Stablecoin

The attacker lost a bunch of money

The bad actor who wreaked havoc with Binance Futures turned out to be someone who has “a well-known account” with Binance. This is already the second time when he tries to cause a string of liquidations on the exchange after he started his own futures platform.

CZ clarified that the market maker who managed to tank the price of BTC to $10,024 was the one who lost “a bunch of money.” None of the exchange users got liquidated as a result of these shenanigans.

Binance was able to dodge the bullet because it now uses the index price instead of the futures prices for liquidation. Although it was touted as an innovation by CZ, his followers pointed out that BitMEX, the number one exchange for trading Bitcoin derivatives, has had its liquidations tied to the index price “since forever.”

Binance CEO on Coinbase Listing BNB: "Careful What You Wish For"

It was an accident

A few hours later, CZ tweeted that the attack was accidental. The black swan situation took place due to a “bad parameter” on the user’s side.

Some of the users took to the other side’s defense, claiming that it was very premature to call out the “attacker” before doing due diligence.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

This site uses cookies for different purposes. Please set your preferences in Consent Settings and visit our Cookie Policy for more information on how and why cookies are used on this site.

Cookie policy