Cryptocurrency exchange Binance said on Wednesday it plans to set up an asset recovery fund and take further measures after a Syscoin (SYS) price spike a day earlier. The leading platform for many altcoins plans to allocate 10% of its trading fees to the fund, due to be launched in the middle of July.
“Binance will create a Secure Asset Fund for Users (SAFU). Starting from 2018/07/14, we will allocate 10% of all trading fees received into SAFU to offer protection to our users and their funds in extreme cases. This fund will be stored in a separate cold wallet,” the exchange said in a statement.
On July 3, Binance revealed an unusual movement in Syscoin price as one coin was bought for 96 BTC with explanations varying from a hack to an honest price mistake.
“At 2018/07/03 20:18:00 (UTC), irregular trades were detected from a number of API users, triggering our internal risk management system. As such, Binance made a timely decision to suspend trading, withdrawals and other account functions,” the exchange explained.
In response to these activities, Binance removed all existing API keys and required users to generate new ones.
The exchange will also scrap trading fees for affected users between July 5 and 14, if they prove they were negatively affected by the SYS pump. All other customers can apply for an additional rebate in the form of the exchange’s own token BNB.
Earlier on Wednesday, Binance CEO Changpeng Zhao denied media reports about a possible hack linked to SYS.
“Update: things are under control, just have some more work to do before enabling trading. Should be soon. Ignore FUD and bad news. Now is an good time to identify which news are bad quality (and remove them),” Zhao tweeted.
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