Binance CEO Changpeng Zhao has justified trading certain underdog altcoins on his platform as nothing more than “market behavior.” Over the past few days, trading activity for Sun Token, Ardor, Osmosis, FUNToken, and Golem has seen an escalation on Binance, raising suspicions among crypto community members amid the ongoing market slump. The total crypto cap has fallen by over $200 billion (approximately Rs.16.51.771 billion) in the past few weeks after crypto exchange FTX dramatically collapsed on liquidity shortages, leaving investors dry.
The rather unconventional trading movement of SUN, ARDR, OSMO, FUN and GLM had people wondering if some accounts were open binance were compromised with stolen keys.
The official Twitter Binance’s Handle revealed that the company was conducting an internal investigation to verify if bad actors were targeting the exchange.
This activity does not appear to be due to compromised accounts or stolen API keys; Funds are SAFU.
We will update this thread if there is any new information.
— Binance (@binance) December 11, 2022
zhao further revealed that the platform had frozen withdrawals on some accounts that had made profits from trading these altcoins as part of its investigation.
We have temporarily blocked withdrawals on some of the benefiting accounts, leading to many 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 investor confidence to pull the market out of the ongoing downturn.
The exchange opened one last month Industrial Recovery Fund and raised $1 billion (nearly Rs. 8,200 crore) from own pockets.
The exchange also has its Proof of reserve checked to ensure that the platform can process all withdrawals.
The company now relies heavily on fine-tuning the Internet security Sector.
On Monday, 12.12. Binance Labs led an investment round for GoPlus Security for an undisclosed amount.
“With this funding, GoPlus Security will be able to grow its technology, create a marketplace for security services, and also attract top talent who want to build a safer, more user-friendly Web3,” Binance Labs wrote in its official blog post.
