Yesterday July 3rd, around 18:00 UTC, strong irregularities were detected in Binance API users. Which triggered the risk management system. So, for now trading, withdrawals and other account functions are suspended.

API Problems in Binance

Binance took a number of temporary measures in relation to an incident last night of irregularities in API users. To protect the security of their API users, Binance has removed all existing API keys and asked all API users to recreate their API keys.

From their website you can read the recommendations that the exchange orders users to take care of their API keys:

1) If you are not a regular API user, do not create an API key.

2) Do not give access to your personal API key to any third-party service provider.

3) Use the IP white list function to ensure that your password is only accessible to you.

Compensation and Reparations for Binance

To protect the future interests of all its users, Binance created a Secure Asset Fund for Users (SAFU). From 2018/07/14, the exchange will allocate 10% of all trade fees received at SAFU to provide protection for its users and funds in extreme cases. This fund shall be stored in a separate cold wallet.

Binance CEO, Changpeng Zhao, announced today at 5:00 EST from his Twitter account that the SAFU was already in place:

For users who were negatively affected by the decision to trade with the SYS price increase, Binance will offer zero-fee trading between 2018/07/05 and 2018/07/14. For all other users, the platform offers a 70% rebate on the trading fees received between 2018/07/05 – 2018/07/14.

The rebate will be given in the form of BNB calculated using the closing price on 2018/07/14.