interest rates rising, yields on the currency held to collateralize the coins are becoming increasingly attractive. Fortune speculated the goal might have been to increase the exchange’s share of the dollar-based stablecoin market. minting partner Paxos to create new BUSD. Last week, Fortune broke the news that Binance had liquidated the USDC collateral–burning it, in crypto parlance–and using the proceeds to pay its U.S. It is not clearly exactly what happened,” but “this is very large, very obviously manual and very recent.” It said in a January 17 report, “Someone received a loan of something like $1 billion for about 100 days. Cumberland/DRW declined to comment on the specifics of its recent transactions with Binance.Ĭrypto forensics firm ChainArgos was the first to raise concerns about Binance not following its own rules for how the pegged-token backing should work and about a persistent lack of collateral to secure billions of dollars in tokens that the exchange issues. Class action lawsuits have been filed against crypto-focused banks Silvergate and Signature, over claims they aided Sam Bankman-Fried’s efforts to misappropriate customer funds before his exchange blew up. While the temporary transfers to Cumberland/DRW and others have not elicited any backlash, or apparent investor harm, alleged manipulations by FTX have created trouble for its business partners. This current case of behind-the-scenes asset shuffling is reminiscent of FTX’s maneuvering prior to bankruptcy when its trading affiliate Alameda Research was alleged to have benefitted from FTX’s disregard for pledges made to customers that their billions of their assets would remain discrete from those of other exchange customers. Having two sets of books means that the company is asking customers and regulators to trust its accounting while making it very difficult to independently verify the solvency it claims. This would seem to undermine Binance’s recent efforts to demonstrate solvency through proof-of-reserves exercises. The implication of Hillmann’s comments is that despite what balances may show in Binance’s publicly viewable exchange wallets, the firm has its own set of proprietary records to keep track of funds.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |