Binance CEO Changpeng “CZ” Zhao says Binance’s future trading platform was the target of a failed attack before subsequently revising what transpired.
According to CZ, a smaller futures exchange, ended up losing a bunch of money in a foiled maneuver that crashed the BTC/USD order book. The technical snafu caused Bitcoin to nosedive from $10,324 to $10,024.
A market maker from a smaller futures exchange tried to attack @binance futures platform. NO ONE was liquidated, as we use the index price (not futures prices) for liquidations (our innovation). Only the attacker lost a bunch of money, and that was that. pic.twitter.com/ztMZEtYKc6
— CZ Binance (@cz_binance) September 16, 2019
CZ called it the second attempt.
“The attacker is a well-known account that trades with Binance, and started their own futures exchange a few months ago. This was the 2nd attempt they tried. Shame!”
He quickly recharacterized the incident after more time and clarity.
“Had a chat with the client. It was an accident, due to a bad parameter on their side. Not intentional. All good now.”
On September 13, Binance launched its new futures trading platform for all users after an initial invite-only phase.
The second-largest cryptocurrency exchange by adjusted 30-day trading volume on CoinMarketCap, Binance is now 16th overall in 24-hour trading at time of writing. The volume follows the September 12th deadline which was the last day of trading on Binance.com for US residents who are now barred from using the exchange due to regulatory concerns.
Binance US, which is focused on US traders, is expected to launch this year.