CZ Pushes Back on Forbes Allegation
CAYMAN ISLANDS – Binance CEO, CZ, published a Tweet thread Tuesday pushing back on allegations made in a recent report by Forbes that in 2022 Binance diverted customer funds “intended to support its customers’ [BUSD].”
According to Forbes, blockchain data shows between August 17 and early December 2022
Binance “silently” transferred $1.8 billion of customer deposits to Cumberland/DWR, a high-frequency trading firm in Chicago. Forbes says the move is “eerily similar” to transfers made by FTX and points out that they occurred when FTX collapsed.
CZ accused Forbes of “misconstruing facts” and pointed to the report’s omission of deposit transactions made by customers and Binance’s use of Zk roll-ups to protect users. The CEO said the report was nothing more than FUD, trying to lump Binance in with FTX. CZ said Binance has “stood the test of time,” but the exchange has been under fire as of late.
Last month, Binance acknowledged it had erred in maintaining its stablecoin’s 1:1 ratio for BUSD. On Monday, Coinbase announced that it would delist BUSD in March, and Paxos will stop minting BUSD after being hit with a lawsuit from the SEC.
