According to Cryptoslate, due to an accounting error, Binance distributed about $20 million of Helium’s HNT coin incorrectly to its customers, according to a Coindesk story on September 16. The flaw was found, and Binance has subsequently corrected it, claims the report.
The HNT and MOBILE tokens are used by the Helium ecosystem to pay out rewards to network users.
The native token HNT is used to reward hotspot hosts, as opposed to the MOBILE token, which was introduced in August but does not yet have a liquid market. Users that sent MOBILE tokens to Binance’s platform received an equal amount of HNT in place of the two tokens, proving that Binance had mistakenly treated them as one, as reported by Cryptoslate.
“We can confirm that this is not a chain 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 comprehensive situation update is provided,” Helium foundation stated.
“We are looking into this and will get back as soon as we can,” Binance said in response to CryptoSlate. A migration plan to Solana is presently up for vote in the Helium community (SOL).
(With insights from Cryptoslate)
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