Binance in trouble again after a Reuters article, citing insider sources, claims that it co-mingled customers’ funds.
The centralized exchanges are constantly under the community’s and journalists’ watchful eyes, particularly after the collapse of FTX. But is this recent allegation Fear, Uncertainty, and Doubt (FUD)?
Binance Co-Mingled Billions of Dollars?
According to Reuters, Binance co-mingled customers’ funds and the company’s revenue in 2020 and 2021. The article claims that the exchange used to co-mingle billions almost daily.
Citing bank records, Reuters claimed that on Feb. 10, 2021, Binance intertwined $20 million from its balance sheet with $15 million of users’ funds.
Binance’s Communications Vice President, Brad Jaffe, clarified that:
“These accounts were not used to accept user deposits; they were used to facilitate user purchases. There was no commingling at any time because these are 100% corporate funds.
When users sent money to the account, they were not depositing funds but buying the exchange’s bespoke dollar-linked crypto-token, BUSD. This process was exactly the same thing as buying a product from Amazon.”
Nansen shows that Binance holds over $57.5 billion in customers’ funds.
Go to Source to See Full Article
Author: Harsh Notariya
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