The company has switched to a “semi-automated” process to govern the reserves that back the tokens it issues. In late January, it was discovered that Binance stored token collateral with user funds in the same wallet.

Bloomberg reported that the firm mistakenly stored collateral for almost half of its 94 Binance-peg tokens (B-tokens) in a single $16 billion wallet that also held customer funds.

On Feb. 23, Bloomberg stated that Binance has now set up a partially-automated process that ensures the B-tokens are “always transparently backed.” This is achieved via a system that “only allows minting of new coins to take place after collateral has been added to the appropriate wallet,” it added.

(By Martin Young)

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