According to Forbes:
Binance transferred $1.8 billion in stablecoin collateral to hedge funds, including Alameda and Cumberland/DRW, leaving its other investors exposed.
CZ, the CEO of Binance, responded as follows:
I am reluctantly spending time on FUD again (4). Forbes wrote another FUD article with lots of accusatory questions, with negative spins, intentionally misconstruing facts. They referred to some old blockchain transactions that our clients have done. They called out Tron, Amber group, Alameda Research, etc. They seem to not understand the basics of how an exchange works. Our users are free to withdraw their assets any time they want. Their withdrawals are turned into “received hundreds of millions of shifted collateral.”
Therefore, someone is lying, or Forbes made a mistake... Like any media company, Forbes may make mistakes or publish inaccurate information.
In 2021, when Forbes wrote a long article about Sam Bankman-Fried, they hardly criticized him for donating only 0.1% of his fortune but they did not analyze FTX assets like they did with Binance... Two years later, as they have been shocked like everyone by the collapse of FTX that they did not see coming, they are now suspicious about all the crypto exchanges, especially when they are not American... How is it possible that FTX, created by this nice American guy, collapsed, whereas Binance, whose founder is from China, became the #1? So, to compensate, they try to find the devil in the details.
To conclude, no one knows if CZ lied or if Forbes made a mistake in their analysis... However, as there is a doubt, it is recommended to transfer your assets from Binance (or from any other crypto exchange) to your own self-custody wallet.
Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.
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