Binance has acknowledged that it may have mistakenly kept collateral backing some of its Binance-peg tokens—known as B-Tokens—in the same wallet as other company funds. These B-Tokens allow users to trade popular cryptocurrencies such as Ethereum (ETH) and Bitcoin (BTC) on the crypto exchange’s native BNB blockchain. When questioned on the reports, Binance told Decrypt that “on-chain data highlighted by third parties show that the administration of hot wallets has not always been perfect.” Binance posted the holdings of a cold wallet known as “Binance 8” which holds much of the collateral backing these B-Tokens. However, this wallet contained more tokens needed to collateralize the B-Tokens on a 1:1 basis, per data from EtherScan. There is more collateral backing these tokens than needed at press time. The crypto exchange told Decrypt that this inconsistency emerged due either to the funds being “not moved quickly enough to the appropriate hot wallets” or that “collateral assets had been stored in cold wallets that were not known to the public.”
Read more : Binance Says Management of Its Funds ‘Has Not Always Been Perfect.’
