Crypto brokerage FalconX unintentionally discovered 1.35 million Solana tokens worth $190 million belonging to Binance, raising questions about the reliability of the asset management systems of both companies.

The Discovery Story

The Solana tokens have been with FalconX since 2021. Later, the largest cryptocurrency exchange Binance, a major liquidity partner of FalconX, claimed ownership and requested the return of the assets. Questions remain on how the brokerage managed to "misplace" such a significant amount. Furthermore, it is surprising that Binance also lost track of $190 million worth of tokens for years.

Return of Assets

FalconX admitted there had been a "reconciliation anomaly" with these Solana tokens. Bringing back the assets to Binance has been prioritized, and both companies have confirmed the assets have been returned. Binance assures that token holders were never at risk, and if the tokens had remained unfound, the exchange would have simply absorbed the loss.

Companies' Status

Both FalconX and Binance continue normal operations following the settlement of the incident. On the day these issues came to light, Binance released its latest Proof of Reserves report, showing its total reserves stand at around $60 billion. Meanwhile, FalconX is showing strong results with the company valued at $8 billion, thanks to a 2.5 times increase in revenue over the past year driven by rising trading volumes and an expanding roster of institutional clients.

The case of the missing tokens highlighted the need for enhanced asset management oversight in large crypto companies. As FalconX and Binance continue to grow, recovering the lost assets was an important step in maintaining trust in their management.