February 4, 2023

Binance Admits to Mixing-Up Users’ Exchange Funds with B-Collaterals By CoinEdition

Binance Admits to Mixing-Up Users’ Exchange Funds with B-Collaterals

  • Binance admitted to storing clients’ exchange funds with B-collateral funds together.
  • The exchange’s spokesperson explained that collateral assets were moved into the wallet in error.
  • Mixup was first identified by ChainArgos, a blockchain analytics firm.

Binance has acknowledged a mistake in its custodial service management. The leading cryptocurrency exchange has publicly admitted to storing clients’ exchange funds with B-collateral funds together, which is not supposed to be done.

According to reports, 94-peg tokens (B-Tokens) are issued by the exchange. The exchange’s storage structure is such that reserves for almost half are stored in a cold wallet referred to as Binance 8. It was observed that the wallet was over-bloated. It contained more tokens than was supposed, indicating a mixup with the excess being customers’ tokens.

A Binance spokesperson is reported to have confirmed this mixup. According to a report, the spokesperson explained that the collateral assets moved into the wallet happened in error.

Furthermore, he stated;

Collateral assets have previously been moved into this wallet in error and referenced accordingly on the B-Token Proof of Collateral page. Binance is aware of this mistake and is in the pro …

The post Binance Admits to Mixing-Up Users’ Exchange Funds with B-Collaterals appeared first on Coin Edition.

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