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 …
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