Binance Says $4.6M Filecoin ‘Double Deposit’ an API Mistake

Mar 20, 2021 | Decrypt News | 0 comments


On Thursday, Coindesk reported on an exploit that allowed $4.6 million in Filecoin tokens to be deposited more than once on Binance. In emails to Decrypt, Filecoin and Binance are chalking it up to an “incorrect use” of APIs, as opposed to a bug.

The issue resembled a “double spend”—a system-breaking defect, usually brought on by an attack on a blockchain, that allows the same cryptocurrency to be spent twice. Filecoin is a token that helps enable a decentralized storage network.

Binance Chain DeFi Project ‘Loses’ $31 Million a Day After Launch

The proof-of-work consensus mechanism that backs Bitcoin and other cryptocurrencies is meant to prevent double spends. But the transaction in question only happened once on the Filecoin blockchain, even though the exchange mistakenly accepted the transaction twice; the result was more like a “double deposit” than a double spend.

A blog post from Protocol Labs, the team behind Filecoin, says that an investigation “found no issues with the Filecoin network or the RPC [remote procedure call] API code.” And in a statement to Decrypt, a spokesperson for Protocol Labs said: “We are confident that there is no double-spend on the blockchain itself.”

Binance told Decrypt that deposits of FIL, Filecoin’s token, were halted yesterday in the wake of the double deposit. “The issue was caused by the incorrect use of the Lotus [Filecoin’s software suite] API logic and its integration in transferring and depositing into the Filecoin Network,” said a spokesperson. An API, short for application programming interface, is a way for software to talk to other software.

According to the Binance spokesperson, there was no loss of funds. They referred Decrypt to Filecoin’s incident report. 

News Source from

Related Articles

Mapping out Genesis Block Ventures’ portfolio

Mapping out Genesis Block Ventures’ portfolio

Quick Take Based in Hong Kong, Genesis Block was founded in 2017 by Wincent Hung and Clement Lp. Aside from operating a proprietary trading desk and offering market making, the firm formed Genesis Block Ventures (GBV), a separate entity that provides investment to the...

Standard Custody takes new route to ‘qualified custodian’ status

Standard Custody takes new route to ‘qualified custodian’ status

Standard Custody received its license to operate as a New York state-chartered trust on May 4, and it's already making a play to gate-crash the institutional custody space. Just days after its licensing, the firm announced the close of a $53 million Series B round for...

Elon Musk tweets BTC price bottom? 5 things to watch in Bitcoin this week

Elon Musk tweets BTC price bottom? 5 things to watch in Bitcoin this week

It's all about Elon as Twitter provides the backdrop to an ongoing battle between hodlers and the "Dogefather." Bitcoin (BTC) is nearing $40,000 this week as “Dogefather” Elon Musk deals out pure pain to hodlers — what’s next?After a traumatic weekend for many crypto...

Pin It on Pinterest

Share This