“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.
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 walletsignificantly 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.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. 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.
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