{"id":16842,"date":"2023-01-24T20:24:21","date_gmt":"2023-01-24T20:24:21","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/binances-collateral-and-user-funds-mistakenly-held-in-one-wallet\/"},"modified":"2023-01-24T20:24:21","modified_gmt":"2023-01-24T20:24:21","slug":"binances-collateral-and-user-funds-mistakenly-held-in-one-wallet","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/binances-collateral-and-user-funds-mistakenly-held-in-one-wallet\/","title":{"rendered":"Binance&#8217;s collateral and user funds &#8220;mistakenly&#8221; held in one wallet"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1674578932288-5d36edbd-bb72-4655-a07b-41e22d783f12-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1674578932288-5d36edbd-bb72-4655-a07b-41e22d783f12-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1674578932288-5d36edbd-bb72-4655-a07b-41e22d783f12-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1674578932288-5d36edbd-bb72-4655-a07b-41e22d783f12-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/><\/picture><\/div>\n<ul>\n<li dir=\"ltr\"><em><strong>Binance is allegedly working to fix the \u201cerror\u201d.<\/strong><\/em><\/li>\n<li dir=\"ltr\"><em><strong><em><strong>The crypto exchange released a proof of collateral report for all 94 Binance-pegged tokens, or B-Tokens.<\/strong><\/em><\/strong><\/em><\/li>\n<li dir=\"ltr\"><strong><em>Data suggested the Binance wallet holding the exchange\u2019s own token reserves also held user funds.<\/em><\/strong><\/li>\n<\/ul>\n<p dir=\"ltr\"><a href=\"https:\/\/coinjournal.net\/exchanges\/binance\/\">Binance<\/a> has reportedly acknowledged storing customers\u2019 funds in a wallet that also holds the cryptocurrency exchange\u2019s in-house tokens.<\/p>\n<p dir=\"ltr\">A <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-24\/binance-bnb-acknowledges-storing-users-crypto-with-reserves-in-error\" rel=\"noopener noreferrer\" target=\"_blank\">report<\/a> by <em>Bloomberg<\/em> on Tuesday revealed that Binance had admitted to the fact, but noted this had happened erroneously.<\/p>\n<h2 dir=\"ltr\">Binance wallet holds B-Tokens and customer funds<\/h2>\n<p dir=\"ltr\">According to details attributed to a Binance official, the report noted the exchange had said the \u2018mixing\u2019 of customer funds and collateral for its B-Tokens was done by mistake.\u00a0<\/p>\n<p dir=\"ltr\">B-Tokens are Binance-pegged versions of crypto tokens such as Bitcoin, Ethereum and Polkadot. They are wrapped tokens that allow for usability across BNB Smart Chain and other ecosystems. \u00a0<\/p>\n<p dir=\"ltr\">Binance\u2019s proof of collateral report for its in-house tokens released on Monday showed the leading crypto exchange had all 94 B-Tokens fully collateralized. But while the tokens are supposed to be backed 1:1, the <a href=\"https:\/\/www.binance.com\/en\/collateral-btokens\" rel=\"noopener noreferrer\" target=\"_blank\">proof of collateral page<\/a> showed many tokens had way more reserves than that which is needed to match the issued tokens.<\/p>\n<p dir=\"ltr\">This indicates user funds are also stored in the Binance 8 wallet.<\/p>\n<p dir=\"ltr\">The exchange explained the \u201cerror\u201d, noting that the said wallet is a Binance cold wallet that has received collateral assets by mistake. \u00a0The exchange had started fixing the error, the report added.<\/p>\n<p dir=\"ltr\">The <a href=\"https:\/\/coinjournal.net\/news\/tag\/binance-coin\/\">Binance Coin<\/a> token traded higher on Tuesday despite the news, with BNB up by 3.5% at the time of writing to change hands around $314.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/binance-admits-error-in-mixing-token-reserves-and-user-funds\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) Binance is allegedly working to fix the \u201cerror\u201d. The crypto exchange released a proof of collateral report for all 94 Binance-pegged tokens, or B-Tokens. Data suggested the Binance wallet holding the exchange\u2019s own token reserves also held user funds. Binance has reportedly acknowledged [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":16843,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/16842"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=16842"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/16842\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/16843"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=16842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=16842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=16842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}