‘Just Market Behaviour’: Binance CEO Probes Rise in Trading of Underdog Altcoins

The rather offbeat trade movement of SUN, ARDR, OSMO, FUN, and GLM made people wonder if some accounts on Binance were compromised with stolen keys.

Written by Radhika Parashar, Edited by Richa Sharma | Updated: 12 December 2022 17:44 IST

‘Just Market Behaviour’: Binance CEO Probes Rise in Trading of Underdog Altcoins

Photo Credit: Reuters

Binance trying to regain investors’ trust to fetch the market out of the ongoing downturn

Highlights

Binance froze withdrawals on some accounts as part of its probe
The accounts had gained profits from the trading of these underdog altcoi
Binance is betting on finetuning cyber security for Web3

Changpeng Zhao, the CEO of Binance, has justified the trading of certain underdog altcoins on its platform as merely a ‘market behaviour'. In recent days, trading activities for Sun Token, Ardor, Osmosis, FUNToken, and Golem witnessed an escalation on Binance, stirring suspicions among members of the crypto community amid the ongoing market slump. The overall crypto cap dipped by over $200 billion (roughly Rs.16,51,771 crore) in the past few weeks after the FTX crypto exchange dramatically collapsed due to liquidity crunch leaving investors high and dry.

The rather offbeat trade movement of SUN, ARDR, OSMO, FUN, and GLM made people wonder if some accounts on Binance were compromised with stolen keys.

The official Twitter handle of Binance revealed that the company conducted an internal probe to check if bad actors were targeting the exchange.

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This activity does not appear to be due to compromised accounts or stolen API keys; funds are SAFU.

We will update this thread should there be any new information.
— Binance (@binance) December 11, 2022

Zhao further revealed that the platform had frozen withdrawals on some accounts that had reeled in profits from the trading of these altcoins as part of its investigation.

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 :large_orange_diamond: Binance (@cz_binance) December 11, 2022

Binance has been trying to regain investors' trust in order to fetch the market out of the ongoing downturn.

The exchange, last month, opened an industry recovery fund and pitched in $1 billion (nearly Rs. 8,200 crore) from its own pockets.

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The exchange also got its proof-of-reserves audited to ensure its users that the platform can handle all withdrawals.

The company is now betting big on finetuning the cyber security sector.

On Monday, December 12, Binance Labs led an investment round for GoPlus Security with an undisclosed amount.

“With this funding, GoPlus Security will be able to build out their technology, create a security services marketplace and also attract top talent looking to build a more secure, user-friendly Web3,” Binance Labs wrote in its official blog post.

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Further reading: Cryptocurrency, Binance, Changeng Zhao, Crypto Scam

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More