Binance Custody Ceffu Clears Air On Commingling Of Customer Crypto Assets

Binance’s crypto custody platform Ceffu on Wednesday said clients’ digital assets in cold wallets are never commingled as the custody platform maintains segregated accounts and wallets.

The move comes as Reuters once again accused the world’s largest crypto exchange of commingling user funds in accounts held at Silvergate Bank.

However, Binance executives completely denied the report claiming the story to be false and weak. Meanwhile, Binance CEO “CZ” completely ignored the report and kept him busy with Bitcoin Pizza Day.

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Ceffu Never Mix Customer Funds in Cold Wallets

Binance’s institutional custody solution Ceffu took to Twitter to clarify its institutional clients that the custody platform operates on segregated account and wallet systems. Thus, clients’ assets deposited in cold wallets are never commingled.

Ceffu goes on to explain how its off-exchange settlement solution Mirror is completely secure and safe. After institutional clients lock their digital assets in Ceffu cold wallet, the wallet credits the amount of the digital assets to their Binance exchange account at a 1:1 ratio. In fact, the “assets remain in their cold wallet on Ceffu at all times.”

Ceffu enables clients to trade crypto assets on Binance exchange from the security of their cold wallet. It is the only institutional custodian integrated with Binance.

“Our solutions are ISO 27001/27701 certified, SOC 2 Type 1 & Type 2 attested, and receive periodic security examinations, demonstrating our commitment to asset and information security and data privacy. Our cold wallets are also covered by third-party specie insurance.”

Binance’s chief communication officer Patrick Hillman and Binance spokesperson Brad Jaffe confirmed that there is no commingling of funds through Silvergate Bank accounts.

Also Read: Binance CEO Supports Terra Classic Raising LUNC Burn Tax To 0.5%

Reuters Continues To Spread Binance FUD

Binance CEO “CZ” many times earlier refuted Reuter’s efforts to spread FUD surrounding the exchange. He revealed that the same journalist continues to target Binance with incomplete facts and data.

In May, Binance said Reuters missed critical facts in its story about Israeli authorities seizing 190 Binance crypto accounts linked to terrorist groups such as Hamas and Daesh since 2021. Earlier, Binance disputed reports by Reuters on weak anti-money laundering controls by the exchange.

Also Read: Hong Kong Allows Retail Investors Trade Bitcoin, ETH, Other Crypto

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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