Binance reportedly used customer funds for its own purposes in 2022

2/28/2023

According to Forbes, Binance, the world's largest crypto exchange, moved $1.8 billion in stablecoin collateral to hedge funds including Alameda Research, which subsequently left investors exposed, similar to FTX's downfall.

More than $1 billion worth of the crypto known as B-peg USDC were left uncollateralized despite Binance's claims that they were 100% backed. The shift in funds may not be illegal, but could be a concern for investors.

Binance has previously faced scrutiny over its business practices and has reportedly faced a slew of legal and regulatory probes, including investigations from the SEC and the Justice Department.

Binance has commented: "Binance does not, and has never, invested or otherwise deployed user assets without consent under the terms of specific products," a company spokesperson told Insider in a statement. "Binance holds all of its clients' assets in segregated accounts which are identified separately from any accounts used to hold assets belonging to Binance."

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