Binance Refutes Forbes Report on BUSD Collateral Movement

Binance's Response to Forbes Allegations

Binance, the world's leading cryptocurrency exchange, has firmly denied allegations presented by Forbes regarding the secretive movement of $1.8 billion in BUSD collateral. The claims suggested that Binance's actions left BUSD holders at risk by transferring collateral to hedge funds, including Alameda, without proper disclosure.

Collateral Management Practices

A spokesperson for Binance clarified that these transactions were part of internal wallet management processes and did not impact the collateralization of user assets at any point. Binance acknowledged past imperfections in wallet management but emphasized that these issues have been resolved and are verifiable through on-chain data.

CEO's Criticism of Forbes

Changpeng Zhao, CEO of Binance, criticized Forbes for allegedly misrepresenting facts and drawing unwarranted parallels between Binance and the FTX collapse. Zhao argued that Forbes neglected to consider deposit transactions, which are essential to understanding the movement of funds. He highlighted that deposits must occur before withdrawals and that all transactions are traceable on the blockchain.

Transparency and Verification

Binance has reiterated its commitment to transparency, stating that their wallet management processes have been improved for long-term stability. The exchange maintains that there is no commingling of funds, distinguishing between wallets and ledger systems.

By addressing these claims and providing clarity on their operations, Binance aims to reassure users and stakeholders of the integrity of their asset management practices, countering what they consider misinformation and fear, uncertainty, and doubt (FUD) tactics.