Binance futures contract faces what CZ describes as “accidental” attack

The attacker was identified by Binance a “well-known account” holder.
Binance like BitMEX exchange uses the index price for liquidations.

Binance CEO Changpeng Zhao informed users of an attack on the newly launched Binance futures platform. Zhao assured users that “NO ONE” liquidated due to the attack. However, the attacker ended up losing a lot of money.

A market maker from a smaller futures exchange tried to attack @binance futures platform. NO ONE was liquidated, as we use the index price (not futures prices) for liquidations (our innovation). Only the attacker lost a bunch of money, and that was that. pic.twitter.com/ztMZEtYKc6
— CZ Binance (@cz_binance) September 16, 2019

According to Binance, the attacker is someone with “a well-known account.” Apparently, this the second time the attacker pulling the same move with an aim of causing a string of liquidations on the platform.

Binance uses the index price instead of the price of liquidations for all liquidations. This helped the exchange to avoid the havoc. However, users informed Zhao that the leading Bitcoin futures platform BitMEX has had its liquidation tied to the index price “since forever.”

Another tweet by Zhao described the attack as accidental and happed following a “bad parameter” on the side of the user. He claimed to have discussed the matter with the client and found no intention to cause harm.

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