The Binance API scam – James Richardson

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On October 10th, I go this email from Binance at 7am.

Binance Support desk Email

I then proceed to log into my account to see what occurred, and I see thousands of trades, Then I go into a state of shock when I see they were Buying as well:

There are thousands of trades, if you wish to view the entire set, Please click here to download the exported full trades in word format.

I then reach out to Binance Support

At 22:50 Binance support replies with their preliminary assumptions:

CS Aaron (Binance)

Oct 11, 22:50 CST

Dear user,

Thanks for reaching out.

Based upon your statement we understand that your orders in TOMO/USDC trading pair of 2019–10–11 are not authorized by yourself. Per checking into your account we found you have enabled API for trading and we have cross-checked the concerned trades and found they were placed through API.

Please kindly provide the relevant information for us to check.
(1) How did you store your API key?
(2) Did you trade with any third-party trading bot? Please kindly provide the detail of the specific trading bot.
(3) Have you ever provided your API information to any third-party platform? Please kindly provide the detail of the specific platform.
(4) If your API trading programs were designed and programmed by yourself, please kindly provide the detail of the programming language, API server deployment information.

Thank you for your understanding and looking forward to your reply.

Best Regards,
Binance Support Team

I responded to Binance with the following:

Yes, I use API for trading, the bot is hosted on heroku server, however be advised API does not have withdrawal enabled, therefore even with unauthorized access, they could not withdraw funds.

At 11:25 CST Jerry from Binance Support Replies:

jerry.zheng (Binance)

Oct 12, 11:25 CST

Dear user,

Thanks for reaching out.

Please rest assured that we will not unlock your withdrawals without your authorization. Any need to contact us at any time.

Thank you for your understanding.

Best Regards,
Binance Support Team

I am not sure we are on the same page here, my account was hacked, and I want my funds returned.

If this situation is not rectified I will be raising a law suit against binance, approximately 9 k were stolen

Sent from ProtonMail Mobile

jerry.zheng (Binance)

Oct 13, 09:10 CST

Dear user,

Thanks for reaching out.

I am very sorry that the confirmed transfer of the blockchain cannot be reversed due to the particularity and confidentiality of the blockchain. At the same time, we do not recommend that the user license the API to a third party, or use a third-party API. The user is obliged to protect the security of his account. If you choose the alarm, we will cooperate with the police to apologize for the inconvenience.

Thank you for your understanding.

Best Regards,
Binance Support Team

Oct 13, 09:16 CST

the only beneficiary here would be binance with trading fees as withdrawals were not enabled on api
, there would be no reason for hacker buy and sell thousands of times except to rack up fees. It also seems no effort is shown by binance to investigate why hackers would buy and sell the tomo/btc pair.

from ProtonMail Mobile

To answer the opening question, The funds were stolen via Binance fees, hence the Buys and Sells in the quantity of thousands, I urge all users, even those not using the API, To withdrawal your funds immediately from this shady exchange. Furthermore, If anybody has similar stories occurring to them on Binance Exchange , Please do share your story in the comments below. I will be seeking damages from this company, If there are many stories like mine I will consider a class action lawsuit against this corrupt exchange.

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