Binance denies the improper use of USD 1.8 billion in user money

Binance denies the improper use of USD 1.8 billion in user money

Binance, the world's largest cryptocurrency exchange, denied a report published by Forbes with the title "Binance’s Asset Shuffling Eerily To Manoeuvres by FTX", which is argued that the crypto-$ 1.8 billion in connection with the funds has transferred to his user.

, according to Forbes, "tacitly" $ 1.8 billion between August 17 and early December 2022, which were "stored as security to support the stable coins of its customers", and left unsecured means of many of his users.

This happened despite the company's claim that it had completely checked its reserves and never touched the deposits of its customers.

What Forbes says

Forbes claims that $ 1.1 billion of funds, which were deducted by customers in USDC token, which were withdrawn by Circle, to Cumberland/DWR, a high-frequency trading company based in Chicago. Forbes reports that the company "may have supported Binance in his efforts to convert the collateral into its own stable coin Binance USD (BusD).

Forbes also claims that other relevant actors in the crypto ecosystem, such as the Amber Group, Sam Bankman-Frieds Alameda Research and Justin Suns Tron, have received hundreds of millions of binance.

"According to the blockchain data examined by Forbes, from August 17th to the beginning of December-about the same time when FTX imploded-holder of more than $ 1 billion of US dollars, known as B-PEG US token, without collateral for instruments, of which Binance would be 100 % secured by the token, to which they were tied."

Forbes suggests that the way, how Binance manipulated the money of its customers, the maneuvers, the FTX applied before the bankruptcy. The US investigators claim FTX sent money to Alameda Research, although it was forbidden.

The article states that only because Binance is not regulated as a standard financial company, this automatically means that its transactions are illegal. However, it makes it easier for the supervisory authorities to demand that regulated companies separate from the storage of the assets of their customers.

Binance responds to the allegations of Forbes

Binance reacted to the allegations of Forbes to have abused user money, and contested any misconduct. The company's spokesman assured that the transactions in question are part of their internal billing processes and did not affect the settlement of user assets.

"While Binance has previously recognized that Wallet management processes for bony-bound token security were not always error-free, the collecting of user assets was not affected at any time. The processes for managing our collateral wallet were defined in the long term and this can be checked in the chain."

Later the CSO of Binance, Patrick Hillman, explained that capital movements between Wallets are normal and that the stock exchange does not mix its assets with customer money. He asked interested parties to check the correctness of their claims in public blockchain records.

The efforts of Binance to counter the effects of poor publicity are not superficial. The stock exchange was involved in several situations that clouded their image. From the CEO of ftx accusation of the CEO from Binance Orchestrating an turmoil, which was caused by the confirmation that Binance had failed to secure its BUSD stable stable with up to $ 1 billion on earlier occasions.

In addition, the stable coin itself is currently under the magnifying glass of the supervisory authorities. Paxos stopped shaping it after being known that the SEC was examining the company, and the US exchanges are already waking up over their backs, with Coinbase taking the first step and decorating the token.

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