Has Binance Lost $1.8 Billion In USDC? Is This The Next FTX? – Crypto Reporter

Posted: March 16, 2023 at 3:14 pm


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Late last year Forbes initiated an investigation into various transfers from Binance into various hedge funds between August 2022 to December 2022.

The main questions are, does Binance still have control of these funds, and could this end up the way of FTX?

Forbes Investigation

With Binance essentially self-regulating until international and national laws are fully established with regard to the crypto industry, it is mainly down to trust that the big players are performing as well as they say they are and, more importantly, are as liquid as they say they are.

The Findings

Records on blockchain show $1.2 billion of b-USDC being directed to Cumberland DRW, a crypto trading firm, with other collateral moving to Alameda, Justin Sun, and crypto services company Amber Group. The total amounted to $1.8 billion over five months.

Binances response has been lackluster, to say the least, with the b-USDC, a wrapped version of USDC on BNB Smart Chain not controlled by Circle, staying the same supply on-chain after.

What Does This Mean?

The worst-case scenario for this is that Binance fails to maintain backing for its BNB Smart Chain-wrapped assets, exposing its users to significant risk.

Some theories revolve around Binance loaning counterparties the funds backing various Smart Chain assets, in a similar vein to the dire financial practices that led to the downfall of FTX and the loss of billions of dollars of customer funds.

Time will tell if Changpeng Zhao will respond to this.

Ignoring The Doom And Gloom

With news such as this, it is essential to hedge bets and look at how the market will react. Currently, as hedge funds sit with empty accounts waiting to gain capital to reinject into the market, narratives are shifting, and AI technology is sitting at the forefront of the following bullish market movements, regardless of how hedge funds or exchanges may fall.

Avorak is one crypto starting to make waves in the space; with a full suite of machine-learning technologies applicable to both retail and commercial ventures, companies and personal investors alike are moving in. The revenue stream is set to begin in early 2024, with AVRK being the credit to use the Avorak products. A percentage of all revenue is set to be redistributed live to AVRK holders, a feat impossible with regular finance industry practices.

Jumping on this project in the early stages of its ICO will undoubtedly put a hedge against any issues Binance, Circle, or any of the hedge funds may have and will likely put most buyers at the top of the gainers lists when AI truly becomes the market-leading sector for investment.

Want to learn more about Avorak AI?Website: https://avorak.aiWhitepaper: https://avorak-labs-and-technology.gitbook.io/avorak-a.i-technical-whitepaper/

Disclaimer: The statements, views and opinions expressed in this article are solely those of the content provider and do not necessarily represent those of Crypto Reporter. Crypto Reporter is not responsible for the trustworthiness, quality, accuracy of any materials in this article. This article is provided for educational purposes only. Crypto Reporter is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Do your research and invest at your own risk.

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Has Binance Lost $1.8 Billion In USDC? Is This The Next FTX? - Crypto Reporter

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March 16th, 2023 at 3:14 pm




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