Kaito AI is suspected of depositing user funds into Binance Savings as Hot New Capital, with the official statement claiming it was only temporary custodial holding.

BlockBeats News, September 30th. According to cryptocurrency KOL CryptoUnchained's disclosure, on-chain data shows that Kaito AI has allegedly taken the funds used by users to participate in the new project Limitless and deposited them into Binance for asset management. Currently, the new project fund of Limitless has exceeded 90 million US dollars. Kaito's actions are suspected of being unauthorized by users, diverting tens of millions of dollars of user new project principal for profit through Binance's asset management.

In response to this, Kaito's staff stated that they are in the process of restoring their custody service with FalconX, and the temporary custody using Binance was only for storage purposes. Once the process is complete, all funds will be migrated back to the chain and custody will be handled by FalconX, consistent with the practice since the launch in July.