- CoinMamba goes against Binance CEO in a heated conversation on Twitter.
- Binance and 3Commas deny responsibility for a user’s stolen funds through leaked API keys.
- CoinMamba’s leaked API keys are the latest report on the many stolen keys on the 3Commas platform.
A futures trader and crypto investor known by CoinMamba took to Twitter to complain about their compromised account and loss of funds on Binance. The user claimed they’d been stolen from due to an API (Application Programming Interface) Key leak by the crypto trading bot firm, 3Commas.
According to CoinMamba, both Binance and its CEO, Changpeng Zhao “CZ,” had done nothing to help them recover stolen funds and compensate the user for their loss. They claimed that they had only submitted their API keys to 3Commas and nowhere else since the creation of the keys.
On December 9, CoinMamba posted on Twitter that they had “masterfully dodged losing any funds with FTX but still got rugged on Binance.” The user had lamented that they’d lost money on their Binance account and had since then tried reaching out to the Binance customer support team to help rectify this incident.
Citing a leak of their API keys with 3Commas, a third-party crypto trading bot firm in liaison with Binance, CoinMamba was not the first and only user to have reported stolen funds from their account due to an API keys leak from the trading bot, 3Commas.
Earlier this year, customers of Binance, FTX, and Coinbase had unknowingly fallen for a phishing scam when they thought they were signing up for trading bots like 3Commas. Their exchange API keys were stolen and used to extort from their accounts.
Scammers had been posing as 3Commas’ employees and used the opportunity to retrieve vital user information. In response to the event, Changpeng Zhao advised users to reset their API keys from third-party trading platforms to thwart further phishing attacks.
It was no surprise when CoinMamba claimed to have been the latest victim of stolen funds from 3Commas’ end. However, Binance and 3Commas have since denied their responsibility and accountability to CoinMamba’s plight.
A Twitter user named “gainzy” had commented on the issue, accusing Binance of not compensating CoinMamba for their loss, suggesting that the crypto exchange platform could be on its way to insolvency.
“What is the purpose of the SAFU fund if not for situations like this? FTX did compensate while being insolvent,” CoinMamba said.
“Mamba, there is almost no way for us to be sure users didn’t steal their API keys. The trades were made using the API keys you created. Otherwise, we will just be paying users to lose their keys. Hope you understand,” CEO of Binance, CZ, had responded to the December 9 tweet by CoinMamba.
Although, it would seem that CoinMamba did not “understand” as they’d fired back at CZ for implying that they, who had been a customer of Binance for half a decade, had paid over seven figures in fees, could have possibly stolen their API keys.
An hour after the heated interaction on Twitter between CZ and CoinMamba, CZ decided to close the user’s account in a now-deleted tweet based on them being “unreasonable.”
“On top of 3Commas, I am considering putting @coinmamba’s account in off-boarding (withdrawal only) mode. In a screenshot of his deleted tweet, we don’t want to serve unreasonable people…” CZ had said.
CoinMamba had since been given three days to withdraw all their funds from their Binance account.
3Commas Denies Stolen API Keys
Following the incident with CoinMamba and the allegations of their stolen API keys, the cryptocurrency trading bot firm, 3Commas, has denied the allegations that their staff had stolen the API keys.
Multiple reports of API keys being stolen on 3Commas’ platforms, with screenshots being passed around social media, claiming the trading firm was indeed guilty. Still, the CEO of 3Commas, Yuriy Sorokin, debunked the rumors and false allegations in a December 11 blog post.
3Commas had stated that these actions could be a case of phishing attacks and that the trading bot company had incentivized users to instead report to the police to have their exchange accounts frozen. The company had said that the sooner the complaints were made, the faster the crypto exchanges could freeze the scammers’ accounts.
Conclusion
The heated interactions on Twitter between a futures trader and crypto investor, CoinMamba, and Changpeng Zhao of Binance, which led to the suspension of the former’s Binance account, has left users wondering if Binance is on its way to insolvency since it refused to compensate CoinMamba’s loss.
