⚔️ Binance vs CoinMamba

Market Meditations | December 13, 2022

With all the FTX drama, some have vowed not to keep money on a centralized exchange. Others have looked to exchanges such as Binance as the gold standard since they are collateralized. So what happens when the gold standard exchange “kicks” someone out? Let’s take a closer look at Binance suspending a user for being “unreasonable.”

  • A Twitter crypto personality who goes by CoinMamba raised complaints over lost funds on December 8. He claimed that a leaked API key tied to crypto trading firm 3Commas was used to “make trades on low cap coins to push up the price to make [a] profit.”
  • In a series of tweets, he claimed Binance did offer the appropriate support. He tagged Binance and CZ to try and get the situation figured out.
  • CZ responded in essence that Binance could not compensate him because “there [was] almost no way for [the,] to be sure users didn’t steal their own API keys.”
  • CZ then went further. In a tweet that was later deleted, CZ said that he would consider putting the user’s account (CoinMamba) “in off-boarding (withdrawal only) mode,” further saying, “we don’t want to service people who are unreasonable.”

Others also raised the issue of the alleged API hacker and requested Binance to halt withdrawals pending an investigation. CoinMamba was a client for over 5 years and his trading account has reportedly been closed.