{"id":543238,"date":"2023-01-24T16:27:03","date_gmt":"2023-01-24T13:27:03","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/binance-holds-token-collateral-and-user-funds-on-same-wallet-by-mistake\/"},"modified":"2023-01-24T16:27:03","modified_gmt":"2023-01-24T13:27:03","slug":"binance-holds-token-collateral-and-user-funds-on-same-wallet-by-mistake","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/binance-holds-token-collateral-and-user-funds-on-same-wallet-by-mistake\/","title":{"rendered":"# Binance holds token collateral and user funds on same wallet by \u2018mistake\u2019"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a255582907bc\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a255582907bc\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/binance-holds-token-collateral-and-user-funds-on-same-wallet-by-mistake\/#%E2%80%9D_Binance_holds_token_collateral_and_user_funds_on_same_wallet_by_%E2%80%98mistake_%E2%80%9C\" >&#8221; Binance holds token collateral and user funds on same wallet by \u2018mistake\u2019 &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Binance_holds_token_collateral_and_user_funds_on_same_wallet_by_%E2%80%98mistake_%E2%80%9C\"><\/span>&#8221; Binance holds token collateral and user funds on same wallet by \u2018mistake\u2019 &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDEvOGQ4NDkyZDktMzVmNy00MDhiLWI3NGEtOWMwOTJmZDYwODdjLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a4050f8>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.<\/p>\n<p>Binance mistakenly put collateral for some of the Binance-minted tokens, or B-Tokens, in a wallet that also holds customer assets, Bloomberg <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-24\/binance-bnb-acknowledges-storing-users-crypto-with-reserves-in-error\">reported<\/a> on Jan. 24.<\/p>\n<p>On Monday, Binance <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.binance.com\/en\/collateral-btokens\">released<\/a> a proof of collateral for B-Tokens, providing information for all 94 tokens issued by Binance. The firm previously <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.binance.com\/en\/feed\/post\/170170\">stressed<\/a> that B-Tokens are always fully collateralized and backed 1:1.<\/p>\n<p>According to the \u200b\u200bproof of collateral, Binance reserves for almost 50% of all B-Tokens are currently stored in a single wallet called \u201cBinance 8.\u201d The wallet <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.binance.com\/en\/collateral-btokens\">holds<\/a> 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\u2019 coins rather than storing such assets separately.<\/p>\n<p>Despite the matter relating only to B-Tokens, such a wallet management system would <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>arently contradict Binance&#8217;s own wallet guidelines.<\/p>\n<p>According to Binance\u2019s proof of reserve (PoR) page, the exchanges&#8217; corporate holdings are <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.binance.com\/en\/proof-of-reserves\">recorded<\/a> in separate accounts and do not form part of the proof-of-reserves calculations. Binance stated:<\/p>\n<blockquote><p>\u201cWhen a user deposits one Bitcoin, Binance&#8217;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\u2019s corporate holdings, which are kept on a completely separate ledger.\u201d<\/p><\/blockquote>\n<p>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.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Token dump following Binance listing raises insider trading suspicions<\/em><\/strong><\/p>\n<p>\u201cBinance is aware of this mistake and is in the process of transferring these assets to dedicated collateral wallets,\u201d 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.<\/p>\n<p>Binance did not im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely respond to Cointelegraph\u2019s request for comment.<\/p>\n<p>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.<\/p>\n<p>Soon after confirming that Binance\u2019s Bitcoin (BTC) were fully collateralized, Mazars removed Binance\u2019s PoR audits from its website without providing any explanation.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/binance-holds-token-collateral-and-user-funds-on-same-wallet-by-mistake\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Binance holds token collateral and user funds on same wallet by \u2018mistake\u2019 &#8220; 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&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":543239,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/8d8492d9-35f7-408b-b74a-9c092fd6087c.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75014,74862,74863,74860,74879,117],"class_list":["post-543238","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-binance","tag-bitcoin","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-wallet","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/543238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=543238"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/543238\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/543239"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=543238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=543238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=543238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}