An abnormal activity of risk in the Syscoin’s Blockchain was seen yesterday supposed to took place at block 87670. An uneven trading activities that took place on Bitcoin Exchange ‘Binance’ led to hike price of the altcoin upward to $6 mln. Syscoin’s Team accepted the issue that took place on Exchange and temporarily halted trading accross crypto exchanges to look deeper into this issue. This Issue was however reportedly resolved after some time affirming the Syscoin’s Team.
As per Syscoin’s Team, Strange activities on the Syscoin blockchain took place as more than one billion coins were mined. This triggered a red flag as the Syscoin’s total possibly supply is set to 888 million. Syscoin’s team came forward with a public statement afterwards, resolving the issue.
A BINARY LEVEL ATTACK TOOK PLACE
Bitcoin developer Jameson Lopp further explained on this issue that took place as:
“Breaking the capital supply rules for a cryptocurrency can’t be accomplished via a 51% attack; this indicates that a flaw has been found and resolved at the protocol level.”
He compared this vulnerability to one which was exploited in Bitcoin’s blockchain in year 2010 — which allowed for the creation of 184 billion bitcoins earlier.
FURTHER SUSPECTS IN THIS CASE
Syscoin’s block 87670 wasn’t the only thing raising suspect. Shortly after this bug was announced, a single SYS coin at price of around $0.260077 was traded for 96 BTC at $6560.03 each on the Binance Exchange which in return caused a massive pump in the price of Syscoin.The price of Syscoin more than doubled in only a few hours, Shortly after this trade on Binance took place, the cryptocurrency exchange announced an API key reset, due to “irregular trading on some APIs.” Even though Syscoin wasn’t mentioned namely, the events seemed likely connected to each other.
Furthermore, Syscoin’s Team came forward with an announcement shortly after the events, explaining they’ve resolved the issue. In a rather unclear tweet by the Team, they said that the irregular blockchain activity was coupled with abnormal trading behavior — but failed to provide any further clarification. Further details are expected to arrive tomorrow.