Bitcoin Price Drops Below $10K Due to Binance Phishing Hacks

Binance automatically spotted this activity and immediately suspended all withdrawals

Bitcoin took a hard hit on Wednesday as its price plunged from $10,700 to $9,300 in just 24 hours — an 11 percent crash, more than average market volatility. Since then the price has carried on it’s downward trajectory.

One of the possible causes of this recent volatility is the unusual activity spotted on the Binance exchange. Binance automatically spotted this activity and immediately suspended all withdrawals. No funds left the exchange due to Binance’s quick automatic response to the incident.

Interestingly, the commotion started with Bitcoin, along with another altcoin Viacoin. The fourth biggest crypto exchange in the world noticed something strange was happening with the VIA price action.

The buy orders of VIA on Binance increased massively. In fact, the market capitalization of Viacoin grew dramatically from $64 million to $159 million in just a short span of time. In a statement released by Binance, they said that they discovered a number of unauthorized sell orders.

They added that they’re also currently investigating anomalies with the fund balances of some of their users. As of now, the crypto platform confirmed that the victims of the breach are users that fell victim to a phishing campaign.

The shaky situation of Binance had surely sent a shockwave of increased doubt and skepticism on cryptocurrencies. The prices of the top five cryptocurrencies, Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ripple, all went down.

Cryptocurrencies remain highly volatile. Incidents like these aren’t the only factors to volatility, but they are certainly some of the factors. According to CryptoCompare CEO Charles Hayter, the crypto community can be compared to the Wild West. Hayter believes that people with illegal intent can easily override even the most secure exchange platforms, just like cowboys robbing banks in the wild west.

On the brighter side, there’s no doubt that this problem will soon be a thing of the past. However, the risk of another incident like this is very likely, and that’s what people need to watch out for.

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