Binance vs Reuters: Unraveling the Truth Behind Cold Wallet Commingling Allegations

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In a recent development, Binance‘s crypto custody platform, Ceffu, has clarified that its clients’ digital assets stored in cold wallets are never commingled, maintaining segregated accounts and wallets for each client. This announcement comes in response to Reuters’ repeated accusations against the largest crypto exchange in the world, which claims that Binance commingles user funds in accounts held at Silvergate Bank. However, Binance executives vehemently deny these allegations, branding the story as false and baseless.

Ceffu’s official statement on Twitter reassured its institutional clients that the custody platform operates on a segregated account and wallet system. Thus, assets deposited in cold wallets by clients are never commingled. Furthermore, the custody solution elaborated on the security and safety of its off-exchange settlement solution, Mirror. According to Ceffu, once institutional clients lock their digital assets in Ceffu cold wallets, the wallet credits an equivalent amount of digital assets to their Binance exchange account at a 1:1 ratio. Importantly, the assets remain in their cold wallet on Ceffu at all times.

As the only institutional custodian integrated with Binance, Ceffu enables clients to trade crypto assets on the exchange while maintaining the security of their cold wallets. The custody platform boasts ISO 27001/27701 certification, SOC 2 Type 1 & Type 2 attestation, and periodic security examinations to demonstrate its commitment to asset and information security and data privacy. Additionally, third-party specie insurance covers Ceffu’s cold wallets.

Binance’s chief communication officer, Patrick Hillman, and spokesperson Brad Jaffe have confirmed that no commingling of funds occurs through Silvergate Bank accounts.

Despite this reassurance from Binance and Ceffu, Reuters continues to disseminate negative news about the exchange. Binance CEO “CZ” has previously refuted many such stories by the news outlet, accusing a particular journalist of targeting the crypto exchange with incomplete data and facts. In May, Binance claimed that Reuters had overlooked crucial details in their story about Israeli authorities seizing 190 Binance crypto accounts linked to terrorist groups like Hamas and Daesh since 2021. In the past, Binance has also disputed Reuters’ reports on the exchange’s weak anti-money laundering controls.

While the ongoing discord between Binance and Reuters remains unresolved, the crypto community eagerly awaits further developments. Binance has a duty to uphold transparency and reassure its clients, while the media should strive for accuracy and integrity in their reporting, allowing market participants to make informed decisions based on unbiased information.

Source: Coingape

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