Syscoin Hack Results in Binance Suspending its Trading Operations

It appears that Syscoin (SYS) cryptocurrency’s blockchain has been compromised. (Update [July 4, 8 AM UTC]: Syscoin has since released a statement claiming the complications did not originate from its network. Read the updates at the bottom for more details.)

According to Syscoin :

“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.”

Reports indicate that more than one billion Syscoin (SYS) was mined from a single block. The total hard cap limit of the cryptocurrency is set at 888 million. A detailed analysis has yet to take place on the Syscoin attack, but for now, exchanges are being advised to halt the trading of Syscoin.

Additionally, 1 SYS is reported to have sold for 96 BTC on the Binance platform whereas it typically trades for a few cents. Needless to say, this is a huge incident. It is unconfirmed, though highly likely that the Binance trade and the Syscoin attack are related.

Binance has suspended all trading. The most recent announcement from Binance relates to an API key reset. This falls into place with the concerns of the SYS API exploitation rumors, as the maintenance is unscheduled.

Bitcoin developer Jameson Lopp told Hard Fork over email that if a hack indeed occurred, the hackers could have exploited a vulnerability in the blockchain’s protocol to achieve this. Lopp told Hard Fork.

“Breaking the monetary supply rules for a cryptocurrency can’t be accomplished via a 51 percent attack; this indicates that a flaw has been found and exploited at the protocol level. It’s likely similar to the buffer overflow vulnerability that was exploited in Bitcoin in 2010 that allowed someone to create 184 billion BTC.”

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