Subscribe to our Telegram channel
Forbes accuses the world’s largest cryptocurrency exchange Binance of fraud with client funds
Forbes journalists have accused Binance, the world’s largest cryptocurrency exchange, of fraudulently handling client funds. Forbes studied Binance 's online activity and stated that the crypto exchange transferred $ 1.78 billion of customer money to several hedge funds.
The exposé reported that Binance, under CZ's leadership, «has completely exhausted its ability to maintain the USDC peg without reducing supply.» It is not yet known whether the journalists' evidence is true, but members of the cryptocurrency community have already begun to suspect Forbes of «foul play» and spreading FUD (fear, uncertainty, and doubt) about Binance.
According to Forbes journalists, Binance broke its own rules. How exactly? The crypto exchange issued a B-token to simplify the use of tokens from other blockchains in the BNB Chain. According to the rules, the exchange should issue B-tokens only if they are 100% backed by the original token. For example, for every 100 B-USDC, there should be 100 USDC collateral.
However, on August 17, 2022, according to a Forbes investigation, the exchange violated its own rules and withdrew $ 3.63 billion from its wallet intended to provide a peg to a cold wallet called Binance 8. The platform then brought $ 1.85 billion back and transferred $ 1.78 billion to the Binance 14 cold wallet. Later, the exchange distributed these funds among Cumberland, Amber Group, Alameda Research, and TRON founder Justin Sun.
As an exchange representative explained in January, the funds were transferred to cold wallets by mistake. Patrick Hillmann, Binance’s chief strategy officer, told Forbes that «there was no mixing of their own and client money.» The article also states that the B-USDC deficit exceeded $ 1 billion on three different occasions. Forbes believes that the crypto exchange is misusing customer funds, similar to the bankrupt FTX exchange.
Users have repeatedly pointed out that the publication is loyal to Сем Бенкман-Фрід" href="https://noworries.media/biography/sem-benkman-frid/" data-bio-id="3697">Sam Bankman-Fried, but provokes FUD against Changpeng Zhao. Last year, cryptocurrency lawyer Irina Heaver tweeted that Forbes was spreading «lies and misinformation.» Zhao has previously sued media outlets for defamation, including Forbes.
The exposé reported that Binance, under CZ's leadership, «has completely exhausted its ability to maintain the USDC peg without reducing supply.» It is not yet known whether the journalists' evidence is true, but members of the cryptocurrency community have already begun to suspect Forbes of «foul play» and spreading FUD (fear, uncertainty, and doubt) about Binance.
According to Forbes journalists, Binance broke its own rules. How exactly? The crypto exchange issued a B-token to simplify the use of tokens from other blockchains in the BNB Chain. According to the rules, the exchange should issue B-tokens only if they are 100% backed by the original token. For example, for every 100 B-USDC, there should be 100 USDC collateral.
However, on August 17, 2022, according to a Forbes investigation, the exchange violated its own rules and withdrew $ 3.63 billion from its wallet intended to provide a peg to a cold wallet called Binance 8. The platform then brought $ 1.85 billion back and transferred $ 1.78 billion to the Binance 14 cold wallet. Later, the exchange distributed these funds among Cumberland, Amber Group, Alameda Research, and TRON founder Justin Sun.
As an exchange representative explained in January, the funds were transferred to cold wallets by mistake. Patrick Hillmann, Binance’s chief strategy officer, told Forbes that «there was no mixing of their own and client money.» The article also states that the B-USDC deficit exceeded $ 1 billion on three different occasions. Forbes believes that the crypto exchange is misusing customer funds, similar to the bankrupt FTX exchange.
Users have repeatedly pointed out that the publication is loyal to Сем Бенкман-Фрід" href="https://noworries.media/biography/sem-benkman-frid/" data-bio-id="3697">Sam Bankman-Fried, but provokes FUD against Changpeng Zhao. Last year, cryptocurrency lawyer Irina Heaver tweeted that Forbes was spreading «lies and misinformation.» Zhao has previously sued media outlets for defamation, including Forbes.