Binance cuts SignalPlus access after security warning, urges users to check accounts

Binance removed all API keys linked to SignalPlus after the third-party trading platform reported a potential security issue, cutting off its access to customer accounts as a precaution, the world's largest cryptocurrency exchange said on Thursday via X.

The exchange urged SignalPlus users to log into Binance directly to check trading positions and open orders. It also recommended waiting until the third-party platform confirmed it has resolved the issue before reconnecting any API keys.

Many crypto traders use external software and APIs to manage their accounts across multiple exchanges. A security issue at one provider could put those API connections at risk, even if the exchanges’ security has not been breached.

Binance suffered the largest crypto hack on record on Oct. 29, when hackers siphoned off $6.3 billion following a months-long campaign. Roughly half was later frozen by Tether, Circle and others.

SignalPlus is a platform for digital asset options trading and provides users with tools and insights.

API (Application Programming Interface) keys allow outside applications to connect to exchange accounts and place trades without users needing to log in each time. If an API is breached or compromised, they can potentially be exploited by malicious actos to execute unauthorized trades, even if withdrawals are disabled.

Binance said its own systems were unaffected by the security breach and assured that customer funds remained safe. The crypto exchange Binance also recommended enabling IP whitelisting, which restricts API access to approved internet addresses. It also called on other connected platforms to check their security controls.

Co-founder of Binance Changpeng Zhao urged users to revoke SignalPlus API keys on other exchanges as well, saying Deribit had also reported the issue. He advised traders against storing API keys with third-party platforms.