In a tweet via his official Twitter handle, Binance CEO Changpeng Zhao warned crypto users who have shared their API private keys with third parties to delete those keys immediately. CZ explained that sharing those API keys puts the account holders at risk.
In his tweet, Zhao mentioned that Binance had witnessed three cases involving crypto users sharing their API private keys with third parties. Then, these third parties started executing unauthorized trading from such accounts.
He reiterated that anyone who uses any of these third-party platforms should delete their private API keys to protect their accounts.
Skyrex and 3Commas are third-party platforms where users share their API private keys. In addition, both platforms are reputed for automating the trading of cryptocurrencies.
How these platforms work is that when these crypto users share their API keys, the platform can access and execute trades from such accounts automatically since they can have access to live market data. They are also in charge of managing such accounts.
Some Crypto Users’ Experiences
Following Zhao’s warning, some crypto users took to Twitter to share their experience of sharing API keys with third-party platforms. For example, a user named @CarlosOMFG tweeted that he noticed that a million dollars worth of assets had just been acquired, not by him, in his Binance account.
Also read:He added that the purchases were surprising to him, given the several layers of security he has on his account. @CarlosOMFG further said this particular action might cause the recent AXS pump as the $1 million purchase was for AXS tokens.
In his response, Zhao asked @CarlosOMFG if he had previously shared his API private keys to any of the mentioned third-party platforms (Skyrex and 3Commas). Then, he asked him to delete those keys instantly if he had done so.
Zhao also asked him if he had lodged his complaints with their customer service agent and whether he had received any response. Another user, @MadCrudeTrader, has a similar case to that of @CarlosOMFG.
@MadCrudeTrader tweeted that in his account, he noticed that some sell orders had been placed automatically without his knowledge. This user stated he has had a similar experience in his account but noted that he has been trading with APIs to buy some ‘little’ assets.
He also stated that several sell orders were executed on the front end without his knowledge. But he clarified that he did not perform these tasks manually or via API.
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