Binance Refutes Comingling Allegations Made By Reuters – May 23

📈 30 Second Cryptocurrency Price Summary

Current Bitcoin Price$27,241

Bitcoin price has reclaimed $27,000 support in a small, but strong upward move overnight, as US debt ceiling discussions escalate.

Top-20 altcoins have mostly seen small increases over the last 24 hours, as Ether gains 2%, BNB rises 1% and Polygon gains 2%.

Top Stories for May 23, 2022 🔥

👉 Binance Refutes Comingling Allegations Made By Reuters

According to Reuters, crypto exchange giant Binance allegedly mixed customer funds with revenue in 2020 and 2021.

However, Binance’s Chief Strategy Officer, Patrick Hillmann, dismissed the report as “weak” and criticized it for lacking evidence. The report claimed that Binance commingled billions of dollars daily in accounts held at Silvergate Bank, which has since collapsed.

One specific instance mentioned involved mixing $20 million from a corporate account with $15 million from a customer account. A Binance spokesperson countered the allegations, stating that the Silvergate Bank accounts were used solely for facilitating user purchases of crypto, and not for accepting user deposits.

👉 Leaked Plans Show EU Banks May Access Stablecoins More Easily

The European Commission is seeking to ease regulations on commercial lenders holding stablecoins and tokenized assets, countering the tough stance taken by the European Parliament.

A leaked document reveals that the Commission’s proposal includes reducing the risk weight for stablecoins tied to non-fiat assets from 1,250% to 250%. Tokenized assets and stablecoins based on fiat currencies would be treated similarly to the underlying instrument, with additional checks on risk management.

The proposal aims to establish a regulatory framework to mitigate risks and potential spillover effects from crypto-asset markets into the financial system. It will need to be agreed upon by the EU member states before becoming law.

👉 Ledger Wallet Private Keys Could Be Shared If Subpoenaed, Says CEO

Ledger CEO Pascal Gauthier has stated that the private seed phrases of Ledger Recover users could, in theory, be handed over to governments if legally subpoenaed.

However, Gauthier believes it is highly unlikely to happen to everyday customers and would be reserved for serious cases involving crimes such as drugs and terrorism. He compared Ledger’s situation to Coinbase, noting that Ledger is not a banking institution and does not face the same legal constraints.

The implications mentioned only apply to the optional “recover” upgrade on the latest Ledger wallet firmware.