The Binance platform sent $20 million in cryptocurrencies to users. Following a bug, the company confused two tokens belonging to the same project.
Binance, the world’s largest cryptocurrency exchange, recently made an accounting error, report our colleagues from CoinDesk. Citing people close to the case, the specialized media reveals that the American branch of the exchange inadvertently sent $ 22 million in crypto-assets to four customers.
Apparently, Binance has confused two cryptocurrencies linked to the same decentralized internet project: Helium. This project has two tokens, the HNT and the Mobile. Following a malfunction, the platform considered these two currencies as a single token.
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Binance’s $20 Million Mistake
De facto, users received HNT tokens instead of Mobile tokens. Binance sent 1 HNT per Mobile token deposited by customers. A total of 4.8 million HNT tokens were credited to users’ accounts for no reason. However, these two cryptocurrencies do not have not at all the same value. HNT is currently worth more than $4.50. For its part, Mobile has no price yet. The token was only recently launched. Mobile token holders then received unexpected millions of dollars in their Binance account.
Between 8/23 and 9/15/2022, four wallets slowly and methodically deposited 4,829,043 MOBILE tokens into their Binance US deposit addresses.
Due to a bug in the exchange’s systems, they were credited 1 HNT per deposited MOBILE token. 1 MOBILE was only worth <0.001 HNT. pic.twitter.com/5wtBHkzrpc
— Arman Dezfuli-Arjomandi 🎈 (@rawrmaan) September 18, 2022
As reported by Arman Dezfuli-Arjomandi, author of a podcast devoted to the Helium project, it took 23 days for Binance to realize its mistake. Asked by CoinDesk, a Helium spokesperson explains:
” The Helium Foundation was informed by Binance late in the evening of September 15 that an accounting error involving HNT had occurred. We can confirm that this is not a blockchain issue and that this issue is isolated to Binance. To our knowledge, no other exchanges or third parties have been affected. We advise token holders to suspend HNT and MOBILE deposits on Binance until a full update on the situation is provided. “.
For their part, customers did not wait for Binance to understand its error. They quickly started to resell HNT tokens received through multiple platforms, including Binance.com. This massive resale weighed on the price of the cryptocurrency, which would be trading around 7 dollars at that time. The price briefly fell back below $3.50 in the wake of the sell-off.
This is not the first time that an error of this ilk has affected the ecosystem. A few weeks ago, we brought you the story of a user of Crypto.com, another exchange platform. Due to human error, she perceived $10 million in his bank account. Before Crypto.com realized her mistake, she had bought a luxury house and spent much of the fortune received.