Binance admits to mixing customer deposits with collateral

After a long period of silence, Binance exchange has admitted to keeping customer deposits and collateral assets in the same wallet.

Binance admits to mixing customer deposits with collateral

Answer the interview Bloomberga representative of the world’s leading cryptocurrency exchange Binance admitted that the platform had mixed user deposits with collateral for B-Tokens, calling it an “error”.

As reported by Kyptos, since November 2022, the time when Binance announced its crypto wallets in an effort to increase transparency and reassure users after the collapse of the FTX exchange, many Blockchain researchers have pointed out an anomaly related to the Binance 8 wallet. Accordingly, this wallet has just been discovered to store customer funds, but is also listed in the list of wallets that secure crypto assets. that Binance issues as BUSD or B-Token.

A Binance representative told Bloomberg:

“Binance 8 is a cold wallet of the exchange. Previously, there was an error that resulted in collateral being transferred here and mentioned on the list of escrow addresses for B-Token. Binance is aware of this error and is in the process of transferring the assets to a separate wallet.”

However, it is not clear when exactly the exchange detected the mixing of funds and how long this situation has happened. A spokesperson for Binance stated that the exchange still guarantees a 1:1 holding of users’ assets.

According to the Bloombergthere are more than 40 B-Token coins (BNB Chain versions of popular tokens such as MATIC, UNI, DAI, MKR, AAVE, ..) are kept as collateral in the Binance wallet 8. Asset value The guarantee for B-Token is up to 539 million USD, accounting for nearly a third of the total assets of 1.8 billion USD held by Binance.

List of assets included in Binance 8 to back B-Token. Source: Bloomberg

Binance in December 2022 has continuously encountered negative news, greatly affecting confidence in the exchange. As a result, according to some statistics, up to 12 billion USD of cryptocurrency was withdrawn from the platform during the peak FUD period.

In January 2023, Binance was also found to have many suspicious signs related to the listing of new tokens when a wallet address was found to have repeatedly bought and sold tokens that were about to be opened for trading on the exchange, causing a stir. insider trading rumors. In addition, the exchange also admitted that there was a problem in the past in securitizing stablecoin BUSD, but it was resolved.

Synthetic Kyptos

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