• Reuters has reported that Binance regularly commingled customer funds with corporate revenue in 2020 and 2021.
  • Binance denies the allegations, claiming that the accounts used to mix user deposits were not used for such purpose.
  • Ledger is pushing for open-source transparency to quell fears regarding Ledger Recover.

Binance Commingles Funds

According to a Reuters story citing three anonymous insiders, Binance has been regularly mixing corporate and user funds in its Silvergate accounts. One source claimed that billions of dollars have been commingled, though Reuters was unable to verify the exact amount. A bank statement reviewed by Reuters showed $20 million from a corporate account mixed with $15 million from an account receiving user funds on Feb. 10, 2021. Binance’s Patrick Hillmann called these claims a „conspiracy theory“ with „zero evidence“.

Binance’s Response

In response to the allegations, Binance spokesperson Brad Jaffe stated that these accounts were not used to accept user deposits; they rather facilitated transactions between customers and other third parties or financial institutions. He further added that all customers‘ funds are safe and secure.

Ledger Push For Transparency

In light of these accusations against Binance, Ledger is pushing for open-source transparency in order to quell fears about Ledger Recover software being compromised. This follows former hedge fund manager Greg Foss‘ criticism of Ordinals cryptocurrency platform earlier this month.

Nigeria CBDC Experiment Stumbles

The recent developments come amidst reports of Nigeria’s Central Bank Digital Currency (CBDC) experiment stumbling due to public resistance. Despite increasing demand for digital currencies in the country, there is still a certain degree of skepticism surrounding them due to their lack of regulation and oversight by authorities.