Binance suspected of not adequately securing the BUSD stablecoin
Crypto winter

Binance suspected of not adequately securing the BUSD stablecoin

The Binance platform has been at the center of all the regulators’ attention for a few months. The platform is suspected of having recently precipitated the official discontinuation of its stablecoin BUSD, managed by the company Paxos.

Since the beginning of the year, Binance has been in the crosshairs of regulators in several separate cases. First, Paxos, whose stablecoin BUSD is associated with Binance, is a financial security according to the head of the U.S. Securities and Exchange Commission (SEC). But also its founder Changpeng Zhao suspected of dubious transfers to the tune of $ 400 million.

Indeed, the Forbes publication makes a direct link between the operation of Binance and that of the defunct FTX platform. According to the publication, Binance transferred $1.8 billion in assets to investment funds, including the infamous Alameda Research.

Binance’s chief strategy officer, Patrick Hillmann, spoke out about the transfers, telling Forbes that they were normal operations for the company:

There was no shuffling [of funds] because there are wallets and there is a ledger.

The case will only serve to reassure investors in the cryptocurrency sector. For the Binance platform is once again accused of questionable practices in connection with the principle of guaranteeing its stablecoins. An accusation that Changpeng Zhao (CZ) is trying to minimize even today by explaining that the journalists of Forbes “seem not to understand the basics of how an exchange works”. According to him, Binance users “are free to withdraw their assets at any time”. And we’ll have to take his word for it.

According to blockchain data reviewed by Forbes, from August 17 to early December (around the same time FTX imploded) holders of more than $1 billion in crypto known as B-peg USDC tokens found themselves without collateral for the instruments claimed by Binance.

To be continued…

Article written by:

Laeti Marison, also known as SatoshiBelle, is a multifaceted professional with a passion for community management, content creation, and digital marketing. With a diverse background in various roles, Laeti has consistently demonstrated her expertise and dedication in the field. Recognizing her potential, Laeti then took on the responsibilities of a Project and Community Manager at Magna Numeris and Cartam from November 2018 to March 2021. In this role, she showcased her ability to successfully lead projects and foster strong relationships within the community. Currently, Laeti serves as an SEO content writer, Digital Marketing Manager, and co-founder at magazine, starting from February 2022 till now. Through her expertise in digital marketing and her passion for the crypto industry, she has contributed to the success of the magazine, ensuring its content remains relevant, engaging, and informative.

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