- Forbes finds illegal Binance transfers
- For example, sending client stablecoins worth $1.78 billion
- The exchange denies this and refutes
Forbes Edition accused crypto exchange Binance in “behind-the-scenes maneuvers”. They found that the exchange had transferred $1.78 billion in collateral to various hedge funds.
In particular, the exchange sent $1.1 billion to traders from Cumberland/DRW. The remaining “small transfers” (in the hundreds of millions) are addressed to Amber Group, Alameda Research and Justin Sun.
According to reporters, Binance has completely exhausted its B-peg USDC collateral without reducing its supply.
“When you are the world’s largest crypto exchange in a largely unregulated market, it’s easy to come up with rules. Binance hands over $1.8 billion in stablecoin collateral to hedge funds, leaving other investors exposedthe media said.
Such maneuvers prompted journalists to analogy with the behavior of FTX before bankruptcy. At that time, Frida’s company also “shuffled assets” and carried out strange transactions.
Company Binance denies and refutes the Forbes allegations. Although it has recently been acknowledged that B-peg USDC wallet management processes were not always perfect and they made mistakes. But they assure that the security of user assets has never been affected. The company has now introduced a new collateral management mechanism for B-tokens. This should improve the management of guarantee portfolios in the long term.
