Syscoin (SYS): One SYS Bought for 96 BTC in Rogue Order

Published on 04 July 2018 by Cryptovest Staff

Syscoin spiked suddenly on Binance, with explanations varying from a hack to an honest price mistake, clearing out one 17,000 BTC account to complete orders

Syscoin (SYS) has had its wild runs before, but this time, a trading error or a suspected hacking may have spiked another pump. SYS added more than 48% at one point to $0.28, jumping also in Bitcoin prices to above 7,000 Satoshi. And while SYS is an actively traded project recently added on Binance, this time, the reason for the spike and pump may be a mistaken or rogue order, paying $750,000 for a single token.

There are still speculations about the intent of buying one SYS for 96 BTC - an error, or another intention.

https://twitter.com/BitcoinShark1/status/101426687172456038

https://twitter.com/syscoin/status/1014255355545649152

Reddit users noticed that during the pump, the Syscoin blockchain seemed under attack, with one miner discovering all blocks, and not including transactions. Mining empty blocks for a reward was seen as a sign of an attack. The alternative explanation is that the order of 96 BTC per SYS was an error of the usual price, which was around 0.000096 BTC.

In the past, a similar outlandish pump was seen for Viacoin (VIA), where accounts were targeted for their lowered security, and the funds inside traded for VIA at extraordinary prices. Later, Binance reversed the trades.

After the rogue trade, Syscoin trading was suspended. Still, the move made the coin visible, and may have triggered additional bot activity. Binance recognized the issue as a problem with API users, and immediately locked down for maintenance, requiring API users to generate new keys. This is further evidence that the rogue trade may have been due to a kidnapped account.

https://twitter.com/binance/status/1014334272373547008

While Binance has not been hacked, the exchange has warned about user-side security, and the potential for exposing accounts to bots. The exchange immediately disabled withdrawals, to protect the BTC funds until investigations are completed.