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Binance mishandled $1.8 billion in customer money in 2022 says new a report

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Gherardo Fiorenzo
Gherardo Fiorenzo is an Italian author with a unique perspective shaped by his experiences in Italy and the US. His thought-provoking articles, short stories, and reviews explore the intersections of language, identity, and culture.

according to new Forbes reports Binance mishandled $1.8 billion in customer money, in 2022. This is not first Report indicating that Binance client funds are mixed with company money.

the new The report states that between August 2022, and until the end of the yearBinance moved $1.8 billion in Customer finances it should was supported up that it stablecoin. The agents were not told about the move, and transfers took place At a time when the cryptocurrency markets were reeling from the FTX debacle.

more heat for binance

Stablecoins are under fire in 2023, as central banks prepare to start working out middle bank digital Coins (CBDCs). as a stand-in for Fiat currency, stablecoins are a clear competitor for CBDC market share.

Whereas most stablecoins do use Fiat assets There is no industry standardand users left to decide if they are comfortable with the amount of They have transparency from the stablecoin issuer.

In this case, Binance transferred the funds that should value is supported of B-peg USDC coins, which are a stablecoin associated with the value of United State dollar. When collateral was moved, the tokens were basically unsupported, which should It is disclosed to customers.

the majority of Money was sent to the high frequency trading Cumberland Corporation with $1.1 billion sent, according to the report. the rest of the money He went to Alameda Research, and so did Tron. There was no effect on Binance yet, but this is not a file first Time Binance has admitted to the confused company money with customer money.

earlier this year Binance revealed that it had mixed funds between companies and customers in The same wallet that you offer risk in hold money with exchange. Customers are not told about practice at that time attracted criticism from many in encryption community.

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