Binance Revokes SignalPlus API Access After Security Warning

Binance cuts off SignalPlus connections

Binance has severed access for SignalPlus, a third-party trading platform, after a potential security issue was reported. The exchange, which is a digital platform for trading cryptocurrencies, revoked all API keys linked to SignalPlus as a protective measure.

Changpeng Zhao, the co-founder of Binance, also warned users to remove SignalPlus API keys from any other exchanges they might use. SignalPlus is a service that provides tools and data for trading digital asset options.

Important details for traders

• Binance revoked all API keys connected to the SignalPlus platform.
• The exchange stated that its own internal systems were not affected.
• Customer funds are reported to be safe.
• Traders are encouraged to check their open orders and positions directly on the Binance website or app.

Official response from Binance

Binance announced the decision on Thursday, explaining that the move was a precaution after SignalPlus reported a possible security problem. An API, or Application Programming Interface, is a tool that allows different software programs to talk to each other. In crypto, it lets outside apps place trades on an exchange account without the user logging in manually.

The exchange recommended that users wait until SignalPlus confirms the issue is fixed before trying to reconnect. Binance also suggested that users enable IP whitelisting. This security feature ensures that only specific, approved internet addresses can use an API key to access an account.

Additional warnings for the crypto community

Changpeng Zhao, also known as CZ, noted that the Deribit exchange had also reported the issue. He advised traders to avoid storing their API keys on third-party platforms whenever possible.

This security warning comes shortly after Binance dealt with a major security incident. On Oct. 29, hackers took $6.3 billion from the exchange. About half of those funds were later frozen by companies like Tether and Circle.

Confirmed security status

Binance has confirmed that its own infrastructure remains secure despite the issues at SignalPlus. The exchange stated that the safety of customer funds was not compromised during this event. The revocation of API keys was described as a preventative step to stop any potential unauthorized activity.

Why API security matters

Security problems at third-party providers can put exchange accounts at risk, even if the exchange itself has not been hacked. If an API key is stolen, a malicious actor could use it to make unauthorized trades. This can happen even if the user has disabled the ability to withdraw funds via the API.

Next steps for affected users

Users who have connected SignalPlus to their accounts should log into Binance directly to review their current trading status. Binance has called on other platforms connected to SignalPlus to review their own security controls. Traders should wait for an official update from the third-party platform before attempting to use the service again.

Sources

• CoinDesk