binance BNB/USDthe world’s largest cryptocurrency exchange, has made a mistake by keeping cryptocurrencies used as collateral for some of its crypto assets in the same wallet as its customers’ funds, Bloomberg reported, citing an official Binance spokesman.

The exchange issues a total of 94 Binance peg tokens (B-tokens) and the reserves for almost half of them are held in a cold wallet called Binance 8.

However, the wallet contains more tokens than required for the amount of B tokens issued. This suggests that the collateral was mixed with the customers’ tokens to Bloomberg.

Also read: Bitcoin’s key resistance level at $25,000: will it be a tough nut to crack – or a catalyst for a new cycle?

Binance’s spokesperson told Bloomberg, “We made a mistake by moving collateral to this wallet and referencing it on the B-Token Proof of Collateral page.”

“We are currently in the process of transferring these assets to dedicated collateral wallets.”

The spokesman added that “all assets held with us have been and will be 1:1 hedged.”

Binance came under scrutiny following the collapse of cryptocurrency exchange FTX.

To restore confidence, Binance released a Proof of Reserves report from accounting firm Mazars in December that showed these Binance clients Bitcoin BTC/USD Reserves are overcollateralised.

Next: FTX co-founder’s $3.28 million Washington DC townhouse hits market as Fed seizes $700 million in assets