During the afternoon of March 7, the price of the main cryptocurrencies began to fall, and the altcoin VIA rose vertiginously. Apparently, the bot AltBOT (altcoinbot.io) that operates with the API keys of some exchanges, mainly Binance, started selling BTC to buy VIA.
Users of that third-party application trusted API keys to control Binance accounts. A hacker may have developed a bot that sends orders at the same time (7:00 a.m. Pacific).
Many people noticed something very unusual with Viacoin happening just before the accident. There was a large increase in purchase orders for Viacoins in Binance. In just a few minutes, the market capitalization of Viacoin jumped from $ 64 million to $ 159 million. In this way, it seems that what happened was a malicious strategy of Pump and Dump that took the funds from the victims, turned them into Bitcoin, and then bought the Viacoin cryptocurrency to make it go up in price. Although not all exchanges support the exchange of Bitcoin by VIAcoin and, as the bot can operate with the APIs of different exchanges, the sale of Bitcoin programmed in the bot was also made, causing the price to fall.
Binance examined it and noticed unauthorized sales orders. “We are investigating reports from some users who have problems with their funds, and our team knows and investigates the problem as we speak,” the company wrote on Reddit. “As of this moment, the only confirmed victims have registered API keys (for use with trading bots or others) .There is no evidence that the Binance platform is in danger.”
While the Binance team stopped the retreats, it could be too late. It is also possible that the hacker has already had a great position in Viacoin in another exchange. The hacker could have sold a large stack of Viacoins shortly after manipulating Binance’s price.
In all cases, it shows once again that security is a big problem when it comes to cryptocurrencies. Do not keep your coins in an exchange. Use a hardware wallet or wallet that allows you to control private keys.
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Editor and coordinator of the free book “La era de las BLOCK punto COM”
CEO of bitcoiner.today