Binance reportedly mixed customer funds with company revenue at a US bank | Engadget

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Binance reportedly mixed customer funds with company revenue at a US bank

that commingling happened almost daily in Binance accounts at Silvergate Bank and concerned sums that ran into the billions.

The news agency said it reviewed records showing that, in February 2021, Binance mixed $20 million from a corporate account with $15 million from one into which customer funds were placed.noted that it found no evidence of client funds being stolen or lost. Still, under US financial regulations, customer money must be kept separate from business revenue.

Binance has denied commingling customer funds and its revenue. “These accounts were not used to accept user deposits; they were used to facilitate user purchases” of cryptocurrencies, Binance spokesperson Brad Jaffe told. “There was no commingling at any time because these are 100 percent corporate funds.

However, in late 2020 and during 2021, Binance's website is said to have stated that customer dollar transfers were"deposits" that were credited to trading accounts in BUSD. The site also reportedly informed users that they'd be able to"withdraw" deposits in USD. Former US regulators suggested tothat the language"created the expectation that clients’ funds would be safeguarded in the same way as traditional cash deposits.

 

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