Binance responds to allegations of moving billions in customer funds

ambcrypto.com:

The biggest cryptocurrency exchange in the world, Binance, has refuted a Forbes article alleging that the company shifted $1.8 billion related to its users’ assets.

According to Forbes, Binance “quietly” shifted $1.8 billion deposited “as collateral intended to secure its customers’ stablecoins” between August 17 and early December 2022, leaving many of its users with unbacked cash. 

According to Patrick Hillman, chief strategy officer of Binance, moving money across wallets is normal and not an issue. Because “there are wallets and a ledger,” Hillman claimed, “there was no mixing.”

Forbes stated that USD Coin [USDC] tokens, the stablecoin created by Circle, were used to steal $1.1 billion from clients and send it to Cumberland/DWR, a high-frequency trading firm based in Chicago. To convert the collateral into its own Binance Dollar [BUSD] stablecoin, the corporation “may have supported Binance in its efforts.”

According to Forbes, Binance provided hundreds of millions of dollars in funding to other significant players in the cryptocurrency ecosystem. This included Justin Sun’s TRON [TRX], Sam Bankman-Fried’s Alameda Research, and the Amber Group. They stated:

“According to blockchain data examined by Forbes, from August 17 to early December–about the same time FTX was imploding–holders of more than $1 billion of crypto known as B-peg USDC tokens were left with no collateral for instruments that Binance claimed would be 100% backed by whichever token they were pegged to.”

Forbes claimed that Binance imitated FTX’s pre-bankruptcy moves by similarly manipulating its clients’ money. According to US authorities, FTX allegedly paid money to Alameda Research despite it being against the law.

In response to Forbes’ charges