Binance, the world’s largest cryptocurrency exchange, recently denied a report by Forbes that claimed the exchange had transferred $1.8 billion associated with its users’ funds. Forbes alleged that $1.1 billion of the funds had been sent to Cumberland/DWR, a Chicago-based high-frequency trading firm, and that other actors in the crypto ecosystem had received hundreds of millions of dollars in funds from Binance. Binance responded to the allegations, denying any wrongdoing and stating that the transactions in question were part of their internal billing processes and did not affect the collateralization of user assets.
The Forbes report has caused a stir in the cryptocurrency world, with the CEO of FTX accusing the Binance CEO of orchestrating the downfall of his exchange and the SEC investigating Paxos for minting BUSD stablecoin. As a result, US exchanges have been taking steps to protect themselves, with Coinbase delisting the token.
Binance has been involved in several situations that have tarnished its image, and the exchange is now taking steps to counteract the effects of bad publicity. Binance’s CSO, Patrick Hillman, has invited interested parties to verify the veracity of their claims in public blockchain records. The exchange has also fixed processes for managing its collateral wallets on a longer-term basis.
