Binance’s cryptocurrency 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 more accused the world’s largest cryptocurrency exchange of commingling user funds in accounts held at Silvergate Bank.
Nonetheless, Binance Crypto exchange executives completely rejected the report claiming the story to be false and weak. In the meantime, Binance Crypto exchange CEO “CZ” completely ignored the report and kept him busy with Bitcoin (BTC) Pizza Day.
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. Consequently, 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 reality, the “assets remain in their cold wallet on Ceffu at all times.”
Ceffu enables clients to trade cryptocurrency assets on Binance Crypto exchange 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 investment and information security and data privacy. Our cold wallets are likewise covered by third party specie insurance.”
Binance’s chief communication officer Patrick Hillman and Binance Crypto exchange spokesperson Brad Jaffe confirmed that there is no commingling of funds through Silvergate Bank accounts.
Reuters Continues To Spread Binance Crypto exchange FUD
Binance Crypto exchange CEO “CZ” numerous times earlier refuted Reuter’s efforts to spread FUD surrounding the exchange. He revealed that the same journalist persists to target Binance Crypto exchange with incomplete facts and data.
In May, Binance Crypto exchange stated Reuters missed critical facts in its story about Israeli authorities seizing 190 Binance Crypto exchange cryptocurrency accounts linked to terrorist groups such as Hamas and Daesh since 2021. Earlier, Binance Crypto exchange disputed according to Reuters on weak anti-money laundering controls by the exchange.