Binance Shuts Trader’s Account, CZ Reveals Why

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Binance closed a trader’s account on December 9 after a user complained about how the exchange handled an alleged theft of funds. Binance CEO said that the company does not want to work with “unreasonable” clients.

On December 8, a Twitter user named “CoinMamba” started to complain about the lost money. He said that a leaked API key connected to the crypto trading firm “3Commas” was used “to trade on low cap coins to push up the price to make profit.”

On December 9, CEO Changpeng Zhao also went on Twitter to explain what was going on. But as the user kept complaining on the social media platform, CZ said in another tweet that it was thinking about putting the user’s account “in off boarding (withdrawal only) mode,” saying that “we don’t want to  service people who are unreasonable.” 

The post was later taken down, but a screenshot of it is still in the thread. After that, the user’s account was closed, and they had three days to get their money out.

Some users tweeted that 3Commas had blamed them for the stolen API keys even though the company had denied any kind of vulnerability on its protocols and databases.

3Commas said: 

“On the basis of the information we have today, we have found that no encryption protocols have been found to be compromised and no breaches of 3Commas’ account security databases have occurred.”

Other people on Twitter also talked about the alleged API attack and asked Binance to stop withdrawals and look into what happened.

Binance Attempts to Stop Crypto Hacks

Additionally, Binance launched the “Global Law Enforcement Training Program” which was officially launched on September 27 in an effort to help law enforcement agencies stop financial and electronic crimes that use cryptocurrency or digital assets.

It is noteworthy that hackers accessed an API tied to the trading account and removed digital assets valued at over $1 million as an FTX user reported back in October this year.

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