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

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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.

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