Binance accounting bug leads to $20m misallocation of HNT tokens

Quick Take

  • A bug in Binance’s accounting system gave users the chance to erroneously update HNT token balance.
  • Users are advised to refrain from depositing or withdrawing HNT on the exchange until the matter is investigated.

Helium foundation has alerted Binance about a bug that resulted in users erroneously receiving about $20 million worth of HNT.

An accounting error discovered by Binance at some point last night resulted in the misallocation of funds. The error, where Helium’s MOBILE token was mistaken for HNT, allowed users to send MOBILE balances to HNT wallets and then sell that into the market.

The glitch effectively gave users dollars for pennies and allowed some 4,829,043 MOBILE tokens to exploit Binance’s accounting system, the error is not a chain issue and is isolated to the exchange, The Helium Foundation told The Block.

“We advise token holders to suspend HNT and MOBILE deposits on Binance until a comprehensive situation update is provided,” the foundation said.

Reacting to what may have been the selloff by users taking advantage of the exploit, HNT is trading down, currently around $4.05. 

Binance didn't immediately respond to a call for comment.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.