Attack On Binance Futures Platform a False Alarm

Binance CEO CZ had said that the $300 price drop was due to a market maker trying to manipulate prices

Binance CEO Changpeng Zhao – better known as ‘CZ’ – took to Twitter on Monday morning to say that his company’s futures exchange had come under attack.

“A market maker from a smaller futures exchange tried to attack [the Binance] futures platform,” tweeted the exchange CEO.

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Alongside that tweet was a picture appearing to show the price of Bitcoin crashing by $300, from $10,324 to $10,024.

CZ noted that no one had been affected by the drop in price. The Binance CEO said that his exchange’s platform does not liquidate positions based on futures prices but by an index.

“NO ONE was liquidated, as we use the index price for liquidations,” said CZ. “Only the attacker lost a bunch of money, and that was that.”

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All clear

Two hours after saying that the incident was the result of an ‘attack’ on Binance’s platform, CZ took to Twitter again to say that the whole thing had been an accident.

“Had a chat with the client,” said CZ. “It was an accident, due to a bad parameter on their side. Not intentional. All good now.”

It is unclear as to who was responsible for the price drop. When he still believed that his exchange was ‘under attack,’ CZ said that the firm responsible was a “well known-account that trades with [Binance], and started their own futures exchange a few months ago.”

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