Crypto market drops amid rumors of Binance hack

Recently, rumors began circulating on Reddit that the most popular cryptocurrency exchange in the world by volume, Binance, had been hacked. In a post titled “Binance sold all my Alt coins at market rate,” Reddit user shashankkgg wrote:

Binance just sold all my alts at market rate and I have got just the Bitcoin now. Is it because of account getting hacked or binance bot issue? Have raised a ticket 715903 for this.

In a follow-up statement, Binance wrote:

We are investigating reports of some users having issues with their funds. Our team is aware and investigating the issue as we speak. As of this moment, the only confirmed victims have registered API keys (to use with trading bots or otherwise). There is no evidence of the Binance platform being compromised. Please remain patient and we will provide an update as quickly as possible.

But some users disputed this claim, such as ohohButternut, who wrote, “However, there are people on that thread who say they never used API and had their coins sold… One user reports this story.”

Binance CEO Changpeng Zhao asserts that all Binance funds are safe:

All funds are safe. There were irregularities in trading activity, automatic alarms triggered. Some accounts may have been compromised by phishing from before. We are still investigating. All funds are safe.

Bitcoin dropped by as much as 10 percent during the time these rumors have circulated, along with many other major coins.

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