Binance mistakenly held collateral for some of the crypto assets it issues in the same portfolio as funds owned by its clients, Bloomberg reported on Tuesday. The exchange has issued 94 so-called Binance-peg tokens (B-Tokens), and the reserves for almost half of them are stored in a cold wallet called Binance 8. The wallet contains more tokens than needed for the number of B-Tokens issued. The problem is that when collateral is pooled and used for trading, it gets locked in and clients or asset holders may not be able to withdraw if the pool is reduced, said Laurent Kssis, adviser in crypto trading at CEC Capital, in a note to CoinDesk. “Essentially, this means there is no asset segregation between client funds and collateral used,” Kssis said. “This could prevent the owner(s) from withdrawing due to lack of funds or liquidity by the exchange.