Binance refutes report alleging company commingled customer funds

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Binance pushes back against Reuters report alleging company commingled funds

, the now-collapsed U.S. lender. In one instance on Feb. 10, 2021, Binance was alleged to have mixed $20 million from a corporate account with $15 million from an account that received customer money, the news outlet reported, citing bank records.

Binance spokesperson Brad Jaffe told Reuters that the Silvergate Bank accounts were not used to accept user deposits and rather used to facilitate user purchases of crypto."There was no commingling at any time because these are 100% corporate funds," Jaffe said. In March, the U.S. Commodity Futures Trading Commission sued Binance for allegedly operating an “illegal” exchange and a “sham” compliance program. CFTC, in its complaint at the time, also said that certain Binance entities “have commingled funds.”

A Binance spokesperson referred The Block to Hillmann's tweets, declining to comment on the Reuters report.that Binance keeps"user and corporate funds on completely separate ledgers." He didn't explicitly say that the company does not commingle customer funds. © 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

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