According to Bloomberg, Binance has mistakenly moved the backup collateral for some of the tokens the exchange issues to a wallet where the platform’s customers’ assets are stored.
Reserves for half of the coins that Binance issues are currently stored in a wallet called “Binance 8,” which contains customer assets. Thus, pledged assets and user funds are simply mixed.
“Binance is aware of this error and is in the process of transferring these assets to dedicated collateral wallets,” a company spokesperson said.