Binance trading suspension: 13 hours ago, Binance announced that it would go through another ‘system maintenance,’ which resulted in another suspension of trading on its platform for an extended period of time.
A week and a half ago, the major cryptocurrency exchange went through a similar event that resulted in the suspension of the exchange for ten hours.
This time, there was eight hours of downtime.
— Binance (@binance) July 4, 2018
Binance Trading Suspension: SYS Trading Irregularities
During its maintenance, the Binance internal risk management system found irregular traders in a number of API users. This prompted the suspension of trading and withdrawals on the Binance platform.
The suspension of withdrawals and trades was not originally planned but was a decision made during the maintenance process.
Syscoin, a fork of the Bitcoin protocol, announced yesterday that it had noticed a potential issue and asked major exchanges to suspend the trading of SYS immediately.
We are investigating a possible issue on the Syscoin blockchain, nothing is confirmed but we have asked for exchanges to halt trading while we investigate.
— Syscoin (@syscoin) July 3, 2018
This is what prompted Binance’s maintenance, and when irregularities were found, action was taken.
Binance responded to its users affected by the SYS price fluctuation and said:
“For the users who were negatively affected by choosing to trade the rising SYS price, Binance will offer zero-fee trading between 2018/07/05 – 2018/07/14. If you traded SYS during the incident and believe you were negatively affected, please open a support ticket.”
In addition to this, all other Binance users will be given a 70% rebate of the trading fees received from Binance (not including referrals) between July 5th and July 14th. This rebate will be paid out in BNB and calculated using the closing price on the 14th.
Secure Asset Fund for Users (SAFU)
Binance is also making forward steps to protect its users and is opening a Secure Asset Fund for Users (SAFU). This will begin on the 14th of July, and the company will allocate 10% of all its trading fees to offer protection to Binance users.
These funds will be used in extreme cases such as the one today and any other hacks that could potentially occur on the platform. The SAFU funds will be stored in a separate cold wallet.
While Binance has no control over external cryptocurrency factors such as the one that occurred with SYS, it’s nice to know it is setting some funds aside for its users if these incidents do occur.
Featured Image: Twitter