Binance Refuses Using Customer Assets Without Consent AfterreportForbes says the exchange has moved. “$1.8 billion in collateral to back up client stablecoins.”
Forbes said Binance used the assets anonymously and did so without informing customers. The report cites blockchain data from August to early December.
“Transactions on the specified network “Binance has previously acknowledged that wallet management processes for collateralized tokens tied to Binance are not always flawless. The process for managing our collateral wallet is fixed in the long term and this can be verified on the network.”
Forbes claims that over $1.8 billion of customer funds have been disbursed. All of which consist of USD stablecoin (USDC) tokens.
The majority of client funds, or $1.1 billion, were transferred to Don Wilson’s DRW crypto trading arm, Cumberland, the report said. “This may help Binance in its efforts to convert collateral to Binance USD (BUSD) stablecoin.”
Binance Chief Strategy Officer Patrick Hillman told Forbes that moving funds between multiple wallets is not an issue and is a common practice for the company.
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