<p><span data-preserver-spaces="true">Crypto exchange Binance is pushing back against a <a href="https://www.reuters.com/investigates/special-report/crypto-binance-money/">Reuters report on Tuesday</a> that alleges the company commingled customer funds with revenue in 2020 and 2021, calling the story "weak."</span></p> <p>"They then pinned 1000 words of conspiracy theories (which we explained were false) with zero evidence other than a 'former insider<span data-preserver-spaces="true">," Binance chief strategy officer <a href="https://www.theblock.co/post/231141/binance-market-share-crypto-exchange">Patrick Hillmann</a> </span><a class="editor-rtfLink" href="https://twitter.com/PRHillmann/status/1660987014626287617" target="_blank" rel="noopener"><span data-preserver-spaces="true">wrote in a tweet</span></a><span data-preserver-spaces="true">. </span><span data-preserver-spaces="true">"We've been very public about where the company had regulatory shortcomings in the past."</span></p> <p><span data-preserver-spaces="true">Reuters, citing unnamed sources, </span><a class="editor-rtfLink" href="https://www.reuters.com/investigates/special-report/crypto-binance-money/" target="_blank" rel="noopener"><span data-preserver-spaces="true">reported</span></a><span data-preserver-spaces="true"> that Binance commingled billions of dollars almost daily in accounts the company held at </span><a class="editor-rtfLink" href="https://www.theblock.co/post/218223/silvergate-will-liquidate-bank-wind-down-operations" target="_blank" rel="noopener"><span data-preserver-spaces="true">Silvergate Bank</span></a><span data-preserver-spaces="true">, the now-collapsed U.S. lender. In one instance on Feb. 10, 2021, Binance was alleged to have mixed $20 million from a corporate account with $15 million from an account that received customer money, the news outlet reported, citing bank records.</span></p> <p><span data-preserver-spaces="true">Binance spokesperson Brad Jaffe told Reuters that the Silvergate Bank accounts were not used to accept user deposits and rather used to facilitate user purchases of crypto. "There was no commingling at any time because these are 100% corporate funds," Jaffe said.</span></p> <p>In March, the U.S. Commodity Futures Trading Commission sued Binance for allegedly operating an “illegal” exchange and a “sham” compliance program. CFTC, in its complaint at the time, also said that certain Binance entities “have commingled funds.”</p> <p>A Binance spokesperson referred The Block to Hillmann's tweets, declining to comment on the Reuters report.</p> <p><span data-preserver-spaces="true">Hillmann <a href="https://twitter.com/PRHillmann/status/1661001421733363714?s=20">said in followup tweets</a> that Binance keeps "user and corporate funds on completely separate ledgers." He didn't explicitly say that the company does not commingle customer funds.</span></p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>