An accounting bug on Binance has caused Helium Network’s native HNT token to benefit some of its users. And this makes the world’s largest crypto exchange have to bear losses of up to millions of dollars.
Binance passed down approximately 4.8 million mis-cashed HNT tokens to users, many of whom quickly sold tokens for profit. Because, the price of the token on Friday (16/9/22) was worth around $19 million.
The error seems to stem from how Binance tracks token deposits from the Helium network which is a popular decentralized internet connectivity project. Because, there are two tokens in Helium: native HNT tokens which Helium pays to hotspot hosts and MOBILE tokens paid to Helium 5G infrastructure operators. The token was launched last month and has no liquid market.
Although the two are related, the two tokens, like the ERC-20 token and ether (ETH) on Ethereum, are separate assets. Binance miscalculated it as one token: i.e. HNT. As a result, depositors who send MOBILE to Binance addresses get the equivalent of the more valuable HNT.
The bug has now been fixed by Binance, but this was before around 4.8 million Helium Network (HNT) tokens were shipped in place of MOBILE. The timing of the payout coincided with a massive sale of HNT tokens which pushed the price down from around $7 to its current level of around $4.
According to a spokesperson for the organization managing the project, The Helium Foundation was notified by Binance in the afternoon [ET] on September 15 that there had been an accounting error involving HNT. They have also confirmed that this is not a serial issue, and that this issue will only be isolated on Binance.
According to him, no other exchanges or third parties were affected by the bug. Later, the spokesperson said that Binance advised token holders to suspend HNT and MOBILE deposits on Binance until a comprehensive situation update is provided.
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Source : Binance Medium