FalconX Returns $190M of Untracked Solana Tokens to Binance

Cryptocurrency market prime broker FalconX has returned $190 million of untracked Solana (SOL) tokens to Binance, resolving a high-profile accounting error.

2 mins ago - 2 mins to read

FalconX Accounted for 1.35 Million Solana Tokens After Binance Claim

CoinDesk covered the story earlier this week, revealing that prime broker FalconX failed to account for 1.35 million Solana (CRYPTO: SOL) tokens – an oversight that went unnoticed for over two years.

Now, following inquiries from the crypto outlet, FalconX and Binance have jointly confirmed that the missing SOL tokens have been returned, resolving the issue.

According to a CoinDesk report, FalconX, a cryptocurrency market prime broker, has been failing to account for 1.35 million Solana (CRYPTO: SOL) tokens, estimated to be worth up to $190 million.

The oversight, which spans back to 2021, has raised questions about the internal controls and accounting practices of crypto brokerage firms.

The Solana held by FalconX has thrown up industry-wide skepticism 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.

It remains unclear why FalconX failed to track those assets or how Binance failed to notice such an oversight on its part.

However, the oversight was eventually noticed by Binance, which prompted inquiries and led to the discovery of the missing tokens.

Upon being notified, FalconX confirmed the “reconciliation anomaly” but stated that it had reconciled accounts with all exchanges, clients, and partners and found no transactions to account for the missing tokens.

Despite the oversight, Binance said its customers faced 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.

However, FalconX explained that the subject SOL tokens were merely in custody and not used in any manner for profits.

After being contacted by CoinDesk about the situation, FalconX and Binance issued a joint statement to confirm that the SOL tokens had been returned and the matter was now resolved.

“The SOL tokens in question have been returned and the matter is fully resolved. Business operations are proceeding as normal, unaffected by this recent development,” the statement said.

ᴊᴏɪɴ ᴜs ᴏɴ ᴛᴇʟᴇɢʀᴀᴍ

The above is the detailed content of FalconX Returns $190M of Untracked Solana Tokens to Binance. For more information, please follow other related articles on the PHP Chinese website!