Binance Users Inflate AXS Price 3x Due to Third-Party API Attack
On the evening of November 13th, despite the overall market crisis, the price of AXS unexpectedly surged 3x before quickly dumping right after.
In the span of a single day, AXS price was driven down to as low as $4 before skyrocketing to nearly $20, and is now stabilizing around $7.
1H Chart of AXS/USDT on Binance as of 10:35 AM on 11/14/2022
Many were astonished, unsure of what was happening. Some speculated that it was a price pump scheme by a Market Maker, potentially to enable funds to lock in profits from a $210 million unlock. However, the reality turned out to be different: a Binance user reported that their account had been hacked, with the hacker using nearly $1.5 million to drive up the AXS price dramatically the previous night.
Anyone wondering why #AXS is pumping. Someone, somehow bought a million dollars worth on my @cz_binance @binance account. I have multiple security levels, nobody accessed my account...
— Carlos (@CarlosOMFG) November 13, 2022
WTF!?
I just got REKT. pic.twitter.com/iGOocFZynU
See also: What is an API Token?
The affected user explained that despite undergoing multiple security verifications with Binance and ensuring that no one else had access to their account, they were still attacked and their control was taken over. Binance quickly responded to the user's post, requesting support and clarification on the incident.
On the morning of November 14th, Binance CEO Changpeng Zhao (CZ) stated that the incident was caused by third-party APIs. Specifically mentioning Skyrex and 3commas, CZ advised users to "remove" these APIs as a precaution.
We seen at least 3 cases of users who shared their API key with 3rd party platforms (Skyrex and 3commas), and seen unexpected trading on their accounts. If you used such a platform before, I highly recommend you to delete your API keys just to be safe. 🙏
— CZ 🔶 BNB (@cz_binance) November 14, 2022
Additionally, CZ admitted that there had been at least three similar incidents on Binance, affecting tokens TVK, CVX, and ACM.
According to @CoinmanLabs, yesterday, there may be cases of using contra trading to steal coins on binance, including AXS CVX and TVK.
— Wu Blockchain (@WuBlockchain) November 14, 2022
CZ said: at least 3 cases of users who shared their API key with 3rd party platforms (Skyrex 3commas) and unexpected trading on their accounts. https://t.co/jfGU0JoqYw pic.twitter.com/M7VXlwqF2I
This incident adds fuel to the fire in the ongoing “catch-22” situation within the crypto industry. Trust has been shaken following the collapse of the FTX empire, and other exchanges are beginning to show signs of potential “fraud.”
Even Binance, a stalwart in the industry, is not immune to potential security risks. Recent statements by CZ, claiming to “break the rules” and promising to be more vocal about competitors while not shying away from public confrontations, have left the crypto community increasingly concerned about the "uncertain future" of the industry.
