Warning: unlink(/tmp/jnewslibrary-tzhAUQ.tmp): No such file or directory in /home/customer/www/coinparative.com/public_html/wp-admin/includes/class-wp-filesystem-ftpext.php on line 142
Binance holds token collateral and user funds on same wallet by ‘mistake’ | Coinparative
Coinparative

  • News
    • Crypto News
    • Blockchain News
    • Altcoin News
    • Press Release
    • NFT News
    • Metaverse
    • Web3.0 News
    • Trending
  • Insights
    • Explainer
    • Research
  • Guides
  • Market
    • Market analysis
    • Market News
    • Reviews
    • Price Index
  • Videos 🚀
No Result
View All Result
  • About Us
  • Contact
  • jeet-detector-bot
    JDB(JDB)
    $0.00-0.61%
  • bitcoin
    Bitcoin(BTC)
    $0.00-0.61%
  • ethereum
    Ethereum(ETH)
    $0.000.410%
  • usdex-stablecoin
    USDEX(USDEX)
    $0.00-0.53%
  • tether
    Tether(USDT)
    $0.00-0.23%
  • binancecoin
    BNB(BNB)
    $0.00-0.99%
  • usd-coin
    USD Coin(USDC)
    $0.00-0.31%
  • ripple
    XRP(XRP)
    $0.000.430%
  • binance-usd
    Binance USD(BUSD)
    $0.000.080%
  • cardano
    Cardano(ADA)
    $0.000.870%
  • dogecoin
    Dogecoin(DOGE)
    $0.00-1.24%
  • matic-network
    Polygon(MATIC)
    $0.005.42%
  • okb
    OKB(OKB)
    $0.000.340%
  • solana
    Solana(SOL)
    $0.000.920%
  • staked-ether
    Lido Staked Ether(STETH)
    $0.000.290%
  • shiba-inu
    Shiba Inu(SHIB)
    $0.00-1.81%
  • polkadot
    Polkadot(DOT)
    $0.00-0.31%
  • litecoin
    Litecoin(LTC)
    $0.00-0.99%
  • avalanche-2
    Avalanche(AVAX)
    $0.00-0.45%
  • tron
    TRON(TRX)
    $0.002.83%
View All
Coinparative
Home News

Binance holds token collateral and user funds on same wallet by ‘mistake’

January 24, 2023
in News
242 10
A A
0
Binance holds token collateral and user funds on same wallet by ‘mistake’
Share on FacebookShare on Twitter

Major cryptocurrency exchange Binance reportedly admitted that it mistakenly stores some customer funds in the same wallet with its collateral for some in-house tokens. After the revelation, Binance started the process of transferring the assets in question to dedicated collateral wallets.

Binance mistakenly put collateral for some of the Binance-minted tokens, or B-Tokens, in a wallet that also holds customer assets, Bloomberg reported on Jan. 24.

On Monday, Binance released a proof of collateral for B-Tokens, providing information for all 94 tokens issued by Binance. The firm previously stressed that B-Tokens are always fully collateralized and backed 1:1.

According to the ​​proof of collateral, Binance reserves for almost 50% of all B-Tokens are currently stored in a single wallet called “Binance 8.” The wallet holds significantly more tokens in reserve than required for the amount of B-Tokens that Binance has issued. That allegedly suggests that Binance mixed collateral with clients’ coins rather than storing such assets separately.

Despite the matter relating only to B-Tokens, such a wallet management system would apparently contradict Binance’s own wallet guidelines.

According to Binance’s proof of reserve (PoR) page, the exchanges’ corporate holdings are recorded in separate accounts and do not form part of the proof-of-reserves calculations. Binance stated:

“When a user deposits one Bitcoin, Binance’s reserves increase by at least one Bitcoin to ensure client funds are fully backed. It is important to note that this does not include Binance’s corporate holdings, which are kept on a completely separate ledger.”

According to Bloomberg, Binance has admitted that it stores B-tokens mixed with its own reserves by mistake and is doing its best to fix the issue soon.

Related: Token dump following Binance listing raises insider trading suspicions

“Binance is aware of this mistake and is in the process of transferring these assets to dedicated collateral wallets,” a spokesperson for Binance reportedly said. The representative also noted that Binance 8 is an exchange cold wallet, adding that collateral assets have been previously moved into this wallet in error.

Binance did not immediately respond to Cointelegraph’s request for comment.

As previously reported, Binance launched a PoR process in late November to gain more public trust amid the failure of the FTX crypto exchange. By early December, the exchange scored partnership with the accounting firm Mazars as its official PoR auditor.

Soon after confirming that Binance’s Bitcoin (BTC) were fully collateralized, Mazars removed Binance’s PoR audits from its website without providing any explanation.

Source: Coin Telegraph

Share196Tweet123Share34Pin44ShareSend

Related Articles

MATIC Moves to 10-Month High, ATOM Extends Recent Gains – Market Updates Bitcoin News
News

MATIC Moves to 10-Month High, ATOM Extends Recent Gains – Market Updates Bitcoin News

February 8, 2023
1.4k
Today in Crypto: Brave Reveals Solana Dapp Support, Revolut Announces Crypto Staking Support, Binance Full Audit is ‘Some Way Off’
News

Today in Crypto: Brave Reveals Solana Dapp Support, Revolut Announces Crypto Staking Support, Binance Full Audit is ‘Some Way Off’

February 8, 2023
1.4k
Crypto Derivative Volumes Saw Speedy Growth as Prices Rose in January
News

Crypto Derivative Volumes Saw Speedy Growth as Prices Rose in January

February 8, 2023
1.4k
Invest in Your Fitness Journey and Get Recognized with Fight Out – Celebrate Your Progress with Rewards
News

Invest in Your Fitness Journey and Get Recognized with Fight Out – Celebrate Your Progress with Rewards

February 8, 2023
1.4k
Gazprombank warns of losses stemming from launch of Russian CBDC
Blockchain News

Gazprombank warns of losses stemming from launch of Russian CBDC

February 8, 2023
1.4k
Zero-compromise security solutions for Web3 projects
Press Release

Zero-compromise security solutions for Web3 projects

February 8, 2023
1.4k
Load More

Discussion about this post

Coinparative

2022 © All Rights Reserved.

Coinparative specializes in the digital News and research on cryptocurrency, Digital Assets and Blockchain

  • Advertise
  • Privacy Policy
  • Terms
  • About Us
  • Contact

Follow Us

No Result
View All Result
  • News
    • Crypto News
    • Blockchain News
    • Altcoin News
    • Press Release
    • NFT News
    • Metaverse
    • Web3.0 News
    • Trending
  • Insights
    • Explainer
    • Research
  • Guides
  • Market
    • Market analysis
    • Market News
    • Reviews
    • Price Index
  • Videos 🚀

2022 © All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
DON’T MISS OUT!
Subscribe To Newsletter
Be the first to get latest updates and exclusive content straight to your email inbox.
Stay Updated
Give it a try, you can unsubscribe anytime.
close-link
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.

Warning: unlink(/tmp/jnewsfirstload-qjOobR.tmp): No such file or directory in /home/customer/www/coinparative.com/public_html/wp-admin/includes/class-wp-filesystem-ftpext.php on line 142