Binance Mixed Funds With Collateral: Report
VILNIUS – Binance, the world’s largest crypto exchange, says it mixed customer funds with 94 of its Binance Bridge pegged token collateral, known as b-token. in the same wallet, an unidentified spokesperson told Bloomberg, Tuesday.
The spokesperson 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 process of transferring these assets to dedicated collateral wallets.”
Binance’s error is eerily similar to what FTX was regularly doing with Alameda Research: taking customer funds and using them as collateral with which to trade on the open markets and draw credit from various banks in clear violation of SEC regulation.
