Binance CEO CZ Denies ‘Baseless’ Rumors Of Improper Use Of $1.8B Of Users’ Funds

Binance CEO CZ Denies ‘Baseless’ Rumors Of Improper Use Of $1.8B Of Users’ Funds. 

Binance Accused Of Shuffling Funds

Just yesterday, Forbes published an article accusing Binance of having “silently moved $1.8 billion in funds intended to support its customers’ stablecoins to hedge funds such as Tron, Amber Group and Alameda Research between August and December 2022.

Forbes had even accused Binance of manipulating its customers’ funds in the same way that crypto exchange FTX had done before it collapsed and fell bankrupt just a few months back. 

“According to blockchain data examined by Forbes, from August 17 to early December–about the same time FTX was imploding–holders of more than $1 billion of crypto known as B-peg USDC tokens were left with no collateral for instruments that Binance claimed would be 100% backed by whichever token they were pegged to.” The Forbes article read.

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CZ Denies The Accusations

In response to this, Binance CEO Changpeng Zhao (CZ) has since responded on Twitter, heavily denying these accusations and criticizing Forbes’ “baseless” accusations.

“While Binance has previously acknowledged that wallet management processes for Binance-pegged token collateral have not always been flawless, at no time was the collateralization of user assets affected. Processes for managing our collateral wallets have been fixed on a longer-term basis and this is verifiable on-chain.” CZ clarified.

“I am deeply disappointed that Forbes continues to write baseless articles, losing their own credibility.”

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