Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

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

Published 01/25/2023, 12:41 AM
Updated 01/25/2023, 01:00 AM
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.

See original on CoinEdition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.