Ceffu Takes Against Reuters’ Allegations That Client Asset Never Commingled

Key Points:

• Binance’s crypto custody platform Ceffu said that customers’ digital assets in cold wallets are never commingled.
• The announcement comes after Reuters accused Binance of commingling customer assets in Silvergate Bank accounts.

Ceffu, Binance’s crypto custody platform, said on Wednesday that customers’ digital assets in cold wallets are never commingled since the custody platform maintains separate accounts and wallets.

Ceffu came to Twitter to reassure institutional customers that the custody platform uses separate account and wallet systems. As a result, assets placed by customers in cold wallets are never mixed.

Ceffu goes on to highlight how secure and safe their off-exchange settlement solution Mirror is. When institutional customers store their digital assets in the Ceffu cold wallet, the wallet credits the value of the digital assets to their Binance exchange account at a 1:1 ratio. In truth, the assets are always kept in Ceffu’s cold wallet.

The decision comes after Reuters accused the world’s biggest crypto exchange of commingling customer assets in Silvergate Bank accounts once again.

According to Reuters, citing unidentified sources, Binance commingled billions of dollars practically daily in accounts maintained by the business at Silvergate Bank, the now-defunct U.S. lender. In one incident, on February 10, 2021, Binance was said to have mingled $20 million from a corporate account with $15 million from a customer-funded account, according to bank documents.

Binance’s Chief Communications Officer Patrick Hillmann replied by calling the narrative “weak” and xenophobic while admitting that Binance had previously experienced “regulatory shortcomings.”

Binance was sued by the US Commodities Futures Trading Commission in March for allegedly running an illegal exchange and a sham compliance scheme. The CFTC also said in its complaint at the time that some Binance businesses have commingled funds. However, Binance CEO CZ disregarded the allegations and was preoccupied with Bitcoin Pizza Day.

CZ has already denied Reuter’s attempts to propagate misinformation about the trade. He claimed that the same journalist is still targeting Binance with erroneous information and statistics.

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Harold

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