BLOCKCHAIN

Binance Suspended User’s Account: Here’s Why

  • Crypto exchange Binance has suspended the account of a Twitter user by the name of CoinMamba
  • The trader claims that his funds were stolen due to a leaked API key tied to crypto trading firm 3Commas.
  • CoinMamba believes that the funds were used to “to make trades on low cap coins to push up the price to make profit.”
  • Binance CEO CZ explained that there is no way to tell if the trader lost his key or stole his own and hence, refund is not possible.
  • CZ said that CoinMamba was being “unreasonable” and added that putting the trader’s account in ‘withdrawal only’ mode is better.

The world’s biggest crypto exchange by spot trading volume, Binance, has become the center of attraction for the whole crypto space. The exchange is known for its strict compliance policies, and in a recent series of events, the firm suspended the account of a user who took to the social media platform, Twitter, to complain about the way the platform handled its customers.

A crypto user by the name of CoinMamba decided to take to Twitter to complain about the loss of his funds on December 8. The Twitter personality claimed that his funds were stolen due to a leaked API key tied to crypto trading firm 3Commas which was used “to make trades on low cap coins to push up the price to make profit.”

CoinMamba claims that the API was “only submitted to 3Commas and nowhere else, which I haven’t used since creating an account there. If you have similarly submitted your API there, you should immediately delete them from your Binance account.”

Interestingly, the trader believes that it was the exchange’s fault since it was unable to provide him with proper support.

“Have talked to Binance support and so far they are refusing to do anything to help me with the situation, saying that is my fault. Not sure how the API was leaked, and whose fault is this,” said CoinMamba in a Twitter post.

It is crucial to note that the CEO of Binance, Changpeng Zhao (“CZ”) also took to Twitter to clearity the situation and added that there is almost no way for his firm to verify if a user did not steal their own API key to claim losses or lost the keys somewhere.

“The trades were done using API keys you created. Otherwise we will just be paying for users to lose their API keys. Hope you understand,” CZ stated.

The Twitter user continued to complain about the money he lost on Twitter and demanded the mess to be cleared up. On the other hand, CZ wrote in a Twitter post, which is now deleted but is available as a screenshot, that he is thinking of putting CoinMamba’s account “in off boarding (withdrawal only) mode,” adding “we don’t want to service people who are unreasonable.”

Binance actually closed the Twitter user’s account when he continued his rant and stated that he will make sure that the exchange pays every penny he lost. He stated that since his account is now closed, he will now trade on Sam Bankman-Fried’s bankrupt crypto exchange, FTX.

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