$190 Million Solana Held By FalconX Raises Concerns Over Token Control
The post $190 Million Solana Held By FalconX Raises Concerns Over Token Control appeared on BitcoinEthereumNews.com.
Key Points: FalconX, a prime cryptocurrency broker, failed to track 1.35 million Solana (SOL) tokens, worth around $190 million, since 2021. Binance discovered the oversight and claimed ownership of Solana held by FalconX, requesting their return. FalconX, a cryptocurrency market prime broker, has been criticized for failing to account for 1.35 million Solana tokens estimated at up to $190 million. Read more: FalconX Prepares for 2025 Acquisitions After Record Growth Solana Held By FalconX Not Verified Since 2021 According to a CoinDesk report, it has been doing so since 2021, raising questions about the internal controls and accounting practices of crypto brokerage firms. The Solana held by FalconX has thrown up industry-wide scepticism over the reliability of these firms’ accounting systems. That came to light when Binance, one of FalconX’s key liquidity partners, claimed ownership of the untracked SOL tokens and requested their return. Why FalconX failed to track those assets or why Binance hadn’t noticed such an oversight on its part is anybody’s guess. Resolution Achieved: SOL Tokens Returned to Binance Confirmation of attendance by the crypto brokerage firm did point out the existence of a “reconciliation anomaly” with respect to the Solana held by FalconX. The firm claimed to have reconciled accounts with all exchanges, clients, and partners, but no trace of transactions could be detected. In the oversight, though, Binance said its customers held no risk of losing any money, adding that it would have taken all the losses in case the tokens were not accounted for. In normal proceedings, a prime broker like FalconX would borrow the assets under custody to create value across a variety of financial activities, from collateral use to loans and even arbitrage opportunities. FalconX, however, explained that the subject SOL tokens were merely in custody and not used in any manner…
Filed under: News - @ October 8, 2024 5:19 pm