Binance pulls SignalPlus API keys after trading platform flags potential security issue
In brief
- Binance removed all API keys linked to third-party trading platform SignalPlus on Thursday.
- SignalPlus reported a potential security issue; Binance called the removal precautionary.
- Binance said its own systems were unaffected and user funds remained safe.
- SignalPlus automated strategies on Binance will stop until users set up new keys.
What changes for SignalPlus users
API keys let third-party apps and trading tools connect to a user's exchange account and place trades for that user. Pulling them cuts the connection. According to Decrypt, any automated strategies running on Binance through SignalPlus will stop until users set up new keys.
So what should traders do now?
Binance called the removal an "immediate precautionary measure" and urged SignalPlus users to log into their accounts directly to review their positions and open orders. It recommended they wait until SignalPlus confirms the issue is fully resolved before reconnecting (and that they always enable IP whitelisting). The exchange didn't stop there. It also called on all third-party platforms integrated with Binance to review their security controls, watch for unusual activity and contact it immediately about any concerns.
"Binance's own systems are unaffected. User funds remain safe."
SignalPlus connects to several exchanges, Binance among them.
A busy week for Binance
The SignalPlus notice came a week after attackers drained about $6.4 billion from Binance's hot wallets on October 29, which Decrypt called the largest hack in crypto history. The FBI has attributed that theft to North Korean hackers it calls TraderTraitor. Pyongyang has denied the claim.
Binance has said the attack began when a fake recruiter persuaded one of its engineers to download a malware-laced coding assignment, after which the attackers used stolen credentials to reach an internal wallet signing service.
The recovery's still in progress. On Wednesday, Binance said it had replenished about 98% of the stolen assets from its own funds and was still buying the rest (mostly less liquid tokens) through market and over-the-counter channels. It's also taken a new proof-of-reserves snapshot covering 44 tokens, up from 10, and users can verify it once its zero-knowledge proof is generated in about 50 to 60 hours.
On Thursday, Binance began reopening withdrawals for more assets in phases, prioritizing tokens by user demand over the past week. Deposits remained open.
Frequently asked questions
Why did Binance remove SignalPlus API keys?
Binance said it removed all API keys linked to SignalPlus after the third-party trading platform reported a potential security issue. The exchange described the step as an immediate precautionary measure and said its own systems were unaffected and user funds remained safe.
What should SignalPlus users on Binance do now?
Binance urged SignalPlus users to log into their accounts directly to review their positions and open orders. It recommended waiting until SignalPlus confirms the issue is fully resolved before reconnecting, and always enabling IP whitelisting. Automated strategies running through SignalPlus will stop until new keys are set up.
