Binance Mixed User Funds In Silvergate Bank
According to three sources familiar with the situation, the world’s largest crypto exchange Binance mixed user funds with income in 2020 and 2021. In fact, the exchange already admitted to mixing consumer funds with B-token reserves.
Funds were mixed practically daily in accounts at Silvergate Bank, a crypto-friendly bank situated in the United States. According to an insider with intimate knowledge of Binance’s group finances, the money totaled billions of dollars.
Binance did not follow US banking regulations that require it to keep consumer funds separate from the company’s accounts. Internal procedures to distinguish consumer funds from company revenues are lacking.
Reuters did not confirm the exact figures or frequency. However, it examined a bank document dated February 10, 2021, which revealed Binance mingled $20 million in business cash with $15 million from a customer-funded account.
(With inputs from Shikha Singh)
You need to login in order to Like
