Bitbns using Binance as a custodial mixer
A list of few transactions done by Bitbns from their Binance accounts to Bitbns hot wallets of users for ERC20 USDT:
Thanks Manish who shared the above link for one of their hot wallets which holds USDT
Response of Gaurav Dahake who is the CEO of Bitbns:
The above argument doesn’t makes sense to me so I even discussed it with someone else who has done lot of research related to bitcoin transactions. Even he could not understand why an Exchange would involve Binance in managing their users funds. And there are two things to consider in the above arguments:
- They are using Binance as a a custodial mixer to hide their cold storage addresses which is shady.
- Attack vector argument is not good enough because they are creating a new attack vector by trusting and involving Binance.
You can think other possible reasons why an Exchange might do this however there are lot of serious concerns involved in this setup and I suspect they are using users funds to trade/invest on Binance. Also maybe they dont trust their own security to keep the users funds safe. I understand there are few assumptions in the last two sentences but think for a moment and decide if you would like to trade on such a platform.
If you have more information related to this topic or any questions, please DM me on twitter.