Market Analysis Report (29 Dec 2022)

Binance CEO Changpeng Zhao has said that he is “reasonably sure” there were “wide spread API key leaks” from trading bot platform 3Commas after fresh speculation about the incident emerged on social media.

A spokesperson for 3Commas confirmed the leak in a statement, asking users who “ever put an API key in 3Commas (from any exchange), [to] please disable it immediately.” An investigation conducted by 3Commas and the now-collapsed FTX exchange in October revealed that API keys had been used to conduct unauthorized trades for DMG trading pairs.

At the time, 3Commas said that the API keys weren’t taken from the company and had probably been obtained from a third-party phishing attack or hack. On Wednesday, the firm confirmed the leak was real.

In a statement, a spokesperson for the trading bot platform said:

“As an immediate action, we have asked that Binance, Kucoin and other supported exchanges revoke all of the keys that were connected to 3Commas. We are sorry that this has gotten so far and will continue to be transparent in our communications around the situation.”

The company added only a small number of technical employees had access to the infrastructure and action to remove access has been taken.