Binance records a duplicate $5 million Filecoin deposit

The developers of Filestar and blockchain watcher Filfox found that FIL tokens worth about $5 million were deposited to Binance twice for unknown reasons.

New incident report on today’s exchange bookkeeping issue that resulted from using the Lotus API incorrectly. Learn more about what happened, actions being taken, and the technical details here: https://t.co/D9sWIlZGdM

— Filecoin (@Filecoin) March 19, 2021

The incident occurred overnight from March 18 to 19. In the screenshot below, two transactions of 61,200 FIL on block #590662 are highlighted in red.

Data: filfox.info.

The developers initially suspected that what happened was a double-spend, informing several Chinese media outlets.

Soon after, crypto exchanges Binance and OKEx halted FIL deposits as a precautionary measure.

Protocol Labs, the California-based blockchain startup behind Filecoin, said the issue did not lie in a double-spend and there was no ‘serious bug’, as some outlets reported. Project experts said the problem lay on Binance’s side.

“The Lotus team thoroughly studied the report, finding no issues with the Filecoin network or the RPC API code. No double-spend was detected on the blockchain, and there is no bug in the API code. The corresponding exchange has already reversed the erroneous transaction in its accounting system (no funds were lost). The platform is reviewing the deposit-processing logic to fix the API’s operation,” the Filecoin project’s blog said.

The developers added that other exchanges have been notified, and no similar API problems have been observed since.

Binance has yet to comment on the incident.

Earlier ForkLog reported that the Filecoin network reached 2.5 billion gigabytes. This is equivalent to 11,250 copies of Wikipedia or 47 copies of the Internet Archive.

https://forklog.com/chto-takoe-filecoin/

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