Binance gets the wrong token and sends $20 million to 4 clients

The Helium crypto project aims to be the cornerstone of a fully decentralized Web3. This project happens to have several separate tokens, including HNT and MOBILE. But Binance, due to an error, treated them as the same token. However, there are significant differences in the dollar quotes between the two. Result: more than $20 million wrongly attributed to four Binance customers.

Project Helium reported the error

Our colleagues at CoinDesk report that Binance, the world’s largest cryptocurrency exchange, recently made an accounting error. The trade media quoted people familiar with the matter as saying that the US arm of the exchange inadvertently sent $22 million in crypto assets to four clients.

“The Helium Foundation was notified 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.”

Apparently, Binance confused two cryptocurrencies related to the same decentralized internet project: Helium. This project has two tokens, HNT and Mobile. Because of his mistake, the platform treated the two currencies as a single token.

On the one hand, Helium Hotspot operators receive HNT tokens. On the other hand, 5G hotspot operators receive MOBILE tokens as part of a decentralized internet project. It turns out that they don’t have the same valuation at all.

In fact, users receive HNT tokens instead of Mobile tokens. Binance sent 1 HNT for each Mobile token deposited by customers. A total of 4.8 million HNT tokens were credited to user accounts for no reason.

As of this writing, the price of HNT is indeed around $4.5 per unit. While the MOBILE token is not even listed yet as this token was launched very recently (August 2022) and still lacks liquidity.

An error similar to that of Crypto.com

By equating HNT and MOBILE, Binance distributed 4.8 million HNT tokens before realizing the error in its accounting tracking. The amount of this error is therefore $21.6 million at the aforementioned HNT token price. At least, as long as the MOBILE token has no SEO value.

For their part, customers did not wait for Binance to realize the error. They soon started reselling the HNT tokens they received through several platforms, including Binance.com. This massive sell-off put pressure on the price of the cryptocurrency, which was trading at around $7 at the time. After the selloffs, the price briefly dipped back below $3.50.

If Binance is terribly wrong at this point with token confusion, Project Helium is doing a good job. At the beginning of the year (February 2022), the crypto project managed to easily raise $200 million in development aid.

This is not the first time that such a bug has affected the ecosystem. A few weeks ago we told you the story of another user of the Crypto.com trading platform. Due to human error, his bank account received $10 million. Before Crypto.com realized her mistake, she had bought a mansion and spent most of the property she received.

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Binance gets the wrong token and sends $20 million to 4 clients


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