BlocksInform
- Binance would have transferred the funds from August through December 2022.
- According to a report by Forbes, BINANCE sent money to various hedge funds and platforms, such as Cumberland, Alameda Research and Tron.
- The CSO Patrick Hillmann maintains that there has been no blending of funds.
reportedly moved more than $1.8 billion in customer funds to different firms, sending them to various hedge funds in a move that was “eerily similar” to what happened before the collapse of FTX.
Per the Forbes report published on Monday 27 February, the commingled funds were collateral to Binance-peg tokens, particularly for the stablecoin USD Coin (USDC). The stock market moved the funds without the knowledge of its clients, and involved transactions between mid-August and the beginning of December 2022, the report added.
Binance has shipped client funds to several companies.
Apparently, the stock market has shifted about $1.1 billion of its clients' funds to the Cumberland crypto trading platform, a subsidiary of DRW. The trading company could then have helped convert the funds into usd binance (busd), a stablecoin which was the primary trading pair on the binary exchange.
As reported earlier this month, BUSD issuer Paxos was ordered to stop minting the stablecoin and today, crypto exchange COINBASE announced it would be halting support for BUSD on 13 March 2023.
Outside of cumberland, other companies that would have received binary customer funds were digital assets amber group, ftx affiliate alameda research, and tron. Binance has sent millions of dollars of security to these companies as well.
Earlier this year, binance admitted that it had erroneously stored client funds in the same portfolio that it holds as collateral for b-tokens. About the events described in the last report, cso patrick hillmann stated that what happened before is "normal business" and that there had not been such a thing as the fund mix.
