Binance released its highly anticipated proof of reserves (PoR) on Friday, providing blockchain-based evidence for the Bitcoin on its books. However, many in the crypto community question Binance’s approach, and aren’t fully convinced that they have the transparency they’re looking for. The Move to Proof of Reserves As Binance explained in its announcement, the exchange’s transparency system will add multiple tokens and networks within the next two weeks. For now, it solely validates its Bitcoin holdings. The company’s initial audit…
Coinberry – a Toronto-based cryptocurrency exchange – recently disclosed losing 120 BTC to customers in a lawsuit targeting the perpetrators.
One target of the lawsuit is Binance, an exchange that Coinberry alleges helped launder some of the stolen funds.
- As reported by the Financial Post, the loss had never been revealed until Coinberry’s lawsuit was filed in June.
- The lawsuit explains that customers stole Bitcoin from Coinberry in 2020 by exploiting a software bug exploiting interac e-transfers.
- Users could e-transfer dollars to Coinberry, purchase Bitcoin, and then reverse their e-transfer afterwards. This let them buy Bitcoin while retaining any money they had pretended to spend.
- While the issue is fixed today, over 500 Coinberry users were able to steal Bitcoin by exploiting the bug.
“Coinberry contacted all of the said 546 affected registered users by email and demanded return of the misappropriated bitcoins,” the lawsuit read. “Coinberry also immediately contacted Binance.”
- The lawsuit acknowledged that Binance identified users who took their ill-gotten BTC to its exchange, and attempted to restrict access to their accounts. Nevertheless, Coinberry sued the company.
- Coinberry’s previous efforts were only able to ensure that 37 of the original 120 lost BTC were returned. The lawsuit seeks to recover another 63 BTC from 50 users named in the lawsuit.
- The final, 20 outstanding BTC may be from users who took less than $5,000 in BTC with the exploit. Coinberry says such users were not included in the lawsuit.