Binance's CZ Denies Market Hack After 'Abnormal' Price Movement Suspicions

Binance CEO Changpeng Zhao — better known as “CZ” — has responded to suspicions about the "abnormal price movements" of certain trading pairs on the exchange. 

What Happened: On Sunday, Binance noticed unusual price changes for certain trading pairs that included Sun Token SUN/USD, Ardor ARDR/USD, Osmosis OSMO/USD, FUN Token FUN/USD and Golem GLM/USD tokens, and launched an investigation. 

Nearly 40 minutes in, Zhao declared that the alterations “look like market behavior" and did not appear to be caused by hacked accounts or stolen API keys.

In CZ’s words: “One guy deposited funds and started buying. (Hackers don’t deposit). Other guys followed. Can’t see linkage between the accounts.”

We temporarily locked withdrawals on some of the profiting accounts, which caused a lot of complaints on social media, all from different countries. 2/3 https://t.co/nWSBhn3GrE

— CZ 🔶 Binance (@cz_binance) December 11, 2022

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CZ took proactive action against potential manipulation by temporarily suspending withdrawals on accounts observed to have profited amid the recent market volatility, which caused many to post complaints on social media.

Pointing out the fine line between centralization and necessary intervention, CZ stated that “there is a balance to how much we should intervene.”

Furthermore, he elaborated on the difficulty of detecting stolen or compromised accounts used for manipulative trading considering the caution hackers take when using the stolen account details. “But we try.”

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