How exactly did the hacker sell 1 SYS for 96 bitcoins?
According to Coinmarketcap data, the price of Syscoin (SYS for short, system currency) soared nearly 90% in the past 24 hours.
Why did the price of SYS soar? Let's take a look at the timeline:
SYS had said on Twitter at around 9:00 p.m. on Tuesday night that they were aware of potential problems with the system and advised trading platforms to suspend SYS-related transactions while SYS is investigating. Subsequently, such a transaction occurred on the Binance exchange: one SYS was sold for 96 bitcoins, which is about 600,000 US dollars. The transaction sparked a subsequent surge in the price of SYS.
After the incident,Binance announced thatSome API users had abnormal trading behavior on the SYS trading pair and triggered Binance's risk control system. Binance suspended transactions and withdrawals; users' assets are completely safe. Binance also stated that this incident was a phishing incident by some API users. In terms of specific solutions, Binance deleted all API records and asked users to re-create their own API KEYs.
So, how did the hackers operate in this incident?
Based on the views of financial traders in the industry, Odaily believes that hackers first exploited a loophole to mine over 1 billion SYS at block height 87670, and then deposited this large amount of SYS to Binance Exchange and placed a high-priced sell order. Hackers stole the API keys of several users, purchased the high-priced sell orders they posted, and generated false orders. Then the hacker deployed the liquidity robot in rapid succession, and let his own robot buy 1 SYS with 96 BTC. After successfully pulling the SYS, the hacker sells the rest of the SYS to obtain income from it.
In this incident, it is worth noting that the total supply of SYS was only 888 million, while the hacker dug up 1 billion SYS in one block.
In this regard, Bitcoin developer Jameson Lopp believes that,
Before the publication date,
Before the publication date,The response from Syscoin isI'm Qi Ming from Odaily. To explore the real blockchain, please add WeChat qingmoruoshui for project communication and breaking news. Please note your name, company, and position. For reprinting/content cooperation/reporting, please contact report@odaily.com; illegal reprinting must be punished by law.
As a precaution we had requested exchanges halt $SYS deposit/withdrawal today after we observed odd trading behavior coupled with atypical blockchain activity. After investigating the #Syscoin blockchain is safe. We are asking exchanges to reopen. Detailed wiki post tomorrow. pic.twitter.com/NEypr531zi
— Syscoin (@syscoin) July 4, 2018
I'm Qi Ming from Odaily. To explore the real blockchain, please add WeChat qingmoruoshui for project communication and breaking news. Please note your name, company, and position. For reprinting/content cooperation/reporting, please contact report@odaily.com; illegal reprinting must be punished by law.
