The world’s largest crypto exchange by trading volume, Binance, is facing new allegations. Allegedly, Binance moved customer funds that were supposed to be used to secure certain stablecoin deposits. The procedure is “eerily similar to the manoeuvres of FTX,” writes the business magazine “Forbes.” Binance denied the Forbes allegations.
As “Forbes” found out in its analysis, in August 2022, Binance transferred $1.78 billion from the peg wallet, which was supposed to contain only the collateral mentioned above, first to a cold wallet, then on to a hot wallet, and from there to various hedge funds such as Tron, Amber Group and Alameda Research.
The largest share, however, at $1.1 billion, went to high-frequency trading firm Cumberland/DRW, according to “Forbes.” The money had been moved secretly and without information to the customers. “Holders of more than $1 billion in crypto known as B-Peg USDC tokens had no collateral for instruments that Binance claimed were 100 per cent backed by the token they were tied to,” the business magazine said.
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