Unusual price movements have appeared on Binance. However, the CEO of the exchange later called these "normal moves" even though it soon suspended the withdrawal feature for accounts that benefited from the fluctuation.
Binance's Twitter account announced the investigation at 3 p.m. on Dec. 11. The exchange said that abnormal price fluctuations are not a consequence of the loss of the trading API key. The above volatile trading pairs include Sun Token, Ardor, Osmosis, FUN, and Golem.
We are aware of the abnormal price movements for certain trading pairs on #Binance, involving assets such as $SUN, $ARDR, $OSMO, $FUN and $GLM.
Our team is investigating and taking appropriate actions in regards to the suspicious accounts. — Binance (@binance) December 11, 2022
Previously, a leak related to the transaction API from 3Commas made the community extremely concerned about the safety of buying and selling on applications.
CEO Changpeng Zhao later tweeted:
Based on our investigations so far, this appears to be just market behavior. One guy deposited funds and started buying. (Hackers don't deposit). Other guys followed. Can't see linkage between the accounts. 1/3 https://t.co/QlB1VnlHVs
— CZ 🔶 Binance (@cz_binance) December 11, 2022
"Based on our investigations, this could be normal market volatility. Someone recharged and started buying. Hackers, of course, will not recharge anything. Others then followed suit. No connection has been seen between the accounts."
Accordingly, Binance is "temporarily locking withdrawals with accounts that benefit from the above fluctuations". The move quickly drew criticism of CEX's authority and its ability to interfere too deeply in user activities. Speaking about the above reactions, CEO CZ said:
"We are aware of what it means to interfere too deeply in the operation on the platform. There will be a balance of our level of intervention. Sometimes, things like this happen in the free market and we're still going to have to accept how it works."