Bloomberg: Binance Stored User Funds and Collateral Assets in the Same Wallet

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The largest cryptocurrency exchange assured that it held part of the funds to provide Binance's own tokens along with users' assets by mistake.

According to Bloomberg, the funds were stored in a wallet called "Binance 8" - the amount of assets at this address significantly exceedsThe required volume to supply the 94 tokens issued by the exchange.These are wrapped tokens on the Binance Smart Chain and Binance Chain networks.

Now there are 1.44 million ETH coins worth over $2.3 billion, as well as various tokens worth over $10 billion in the wallet.This is the company's cold wallet, and it should not have any assets to back Binance's native tokens.

"Collateral assets were mistakenly moved to the Binance 8 cold wallet.At the same time, on the page of confirming reserves for our tokens, everything is calculated correctly.We are aware of the error and are in the process of transferring collateral funds to special wallets dedicated specifically for storing collateral," a Binance spokesperson told the publication.

According to the publication's analysts, the Binance 8 wallet stores collateral for more than 40 tokens on Binance networks.The total amount of collateral assets amounted to $539 million.

In traditional financial institutions, it is strictly forbidden to keep collateral funds in the same accounts with user deposits.It is also considered a gross violation of the rules of most regulators.

It was recently reported that some users of the Binance exchange from Russia faced blocking of their accounts.