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Binance denies fund mismanagement allegations

Crypto exchange Binance denies allegations of mismanagement of customers’ funds. Binance’s denial came in response to a Reuters report that alleged that the crypto exchange comingled customer’s funds with company revenue.

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Crypto exchange Binance denies allegations of mismanagement of customers’ funds. Binance’s denial came in response to a Reuters report that alleged that the crypto exchange comingled customer’s funds with company revenue.

The Reuters report alleged that Binance violated United States banking regulations that require client money to be kept separate. The report alleged that the exchange in 2020 and 2021 mixed its corporate revenue with customer funds and that the comingling occurred on a daily basis.

Reuters cited three insiders with knowledge of the crypto exchange’s finances and further claimed that the majority of comingling had occurred on accounts held at now-bankrupt Silvergate Bank, with the amount having reached billions of dollars.

The report alleged that money from users was sent into the Silvergate account of Key Vision Development, a Seychelles-based company that Changpeng Zhao, CEO of Binance, owned. Binance reportedly informed Silvergate that the Key Vision account’s primary function was to collect dollar contributions from non-U.S. clients.

The Binance executive explained that Reuter’s whole claim is based on user deposit-based USD minting, where users were making a purchase of a stablecoin that was redeemable by Paxos, which was explicitly stated on the page.

Solana head of strategy Austin Federa questioned why Hillmann didn’t specifically refute fund-comingling claims, to which the Binance executive claimed that the exchange has addressed this issue on multiple occasions. 

“We keep our user and corporate funds on completely separate ledgers. There is declining ROI on responding to these types of tabloid stories. We know who their sources are and Reuters will be embarrassed when it becomes public,” Hillmann added.

The recent slew of allegations over violation of U.S. banking laws against Binance comes within months of the Commodity Futures Trading Commission’s lawsuit against the exchange.

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Bitcoin price risks drop to $71K as Trump tariffs hurt US business outlook

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Bitcoin is setting its sights on the $71,000 mark as market conditions shift in response to geopolitical and economic developments, including a new tariff agreement and weakening U.S. business sentiment.

Recent market activity suggests that Bitcoin is benefiting from concerns over traditional economic indicators, with investors turning to digital assets as a hedge against economic uncertainty. A rare slump in U.S. business outlook has fueled speculation that risk assets, including Bitcoin, could see increased inflows.

Additionally, ongoing global trade negotiations and tariff adjustments have contributed to market volatility, prompting investors to seek alternative stores of value. Analysts suggest that if macroeconomic pressures persist, Bitcoin could continue its upward trajectory, potentially testing the $71,000 resistance level.

Despite short-term fluctuations, Bitcoin remains a focal point for investors navigating inflation concerns, regulatory shifts, and global economic trends. The coming weeks will be critical in determining whether Bitcoin can sustain its momentum and break through key price barriers.

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Crypto donations top $1B in 2024, gain traction after Myanmar, Thailand quake

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Changpeng “CZ” Zhao, the former CEO of Binance, has donated 1,000 BNB to aid relief efforts following a powerful earthquake that struck the Thailand-Myanmar border region. The donation, valued at approximately $600,000, aims to support those affected by the disaster and assist in recovery operations.

The earthquake caused significant damage in several areas, displacing residents and impacting local infrastructure. CZ’s contribution highlights the growing role of cryptocurrency in humanitarian aid, providing fast and transparent relief funding.

The donation will be distributed to organizations working on the ground to deliver emergency assistance, including shelter, food, and medical supplies. Crypto-based aid is increasingly being utilized in disaster response efforts due to its efficiency in reaching affected communities without the delays of traditional banking systems.

As the affected regions begin the recovery process, the crypto community continues to demonstrate how blockchain technology can play a meaningful role in global humanitarian initiatives.

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Hackers are selling counterfeit phones with crypto-stealing malware

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Security researchers have uncovered a wave of counterfeit Android devices preloaded with malware designed to steal cryptocurrency, posing a significant threat to users worldwide. The infected devices, which mimic popular smartphone brands, contain malicious software capable of hijacking digital wallets and siphoning funds.

The malware, embedded at the firmware level, allows attackers to gain remote access, intercept sensitive data, and execute unauthorized transactions. Because the malicious code is deeply integrated into the device’s operating system, it is difficult to detect and remove, making it a persistent threat.

Cybersecurity experts warn that unsuspecting buyers may unknowingly expose their crypto holdings to risk by purchasing these compromised devices from unverified sellers. Users are urged to exercise caution by only purchasing smartphones from trusted retailers and manufacturers.

The discovery highlights the growing sophistication of cybercriminals targeting the cryptocurrency sector. As mobile-based crypto transactions become more common, security measures such as hardware wallet usage and multi-factor authentication are increasingly essential to safeguard digital assets from emerging threats.

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