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What is wrong with Binance?

Dear Readers,

There is again a serious headline of news that is disturbing the entire crypto world.

Yes, Forbes alleges Binance- the World's Largest Crypto Exchange that Binance has transferred 1.8 billion worth stablecoin to various crypto firms and other hedge funds having after analysed the blockchain data from August 17 early December last year. 

The list of recipients of these alleged illegeal transfers were include Sam Bankman-Fried’s ( The Founder and CEO of the Collapsed FTX Crypto Exchange) Alameda Research, Chicago-based trading firm Cumberland/DRW and Justin Sun’s DApp blockchain, Tron. 

This largely means that Binance has rotated its customers funds and earned money without the consent of the customers. 

This event is being viewed the same in line with what FTX has done in the past which led to the bankruptcy and that has shaken in the entire crypto markets last year. 

We have also come to understand that a long explanation were given by Changpeng Zhao, who is shortly referred as CZ on the BUSD stable coin mechanisms last month after the regulations were put on BUSD.

While both Changpeng Zhao and the officials have reacted sharply to the allegations by Forbes highlighting the following.

  • Forbes often come out with FUD articles on Crypto.
  • They publish these kinds of allegations without knowing the functions of Crypto Exchanges. 
  • These actions of normal and common.
  • They did not do anything illegal. 
  • The user withdrawals are considered as the shifted collaterals. 
  • CZ also alleges that his ethnicity is being criticized. They treat Binance as a Chinese Company. CZ reiterated that though he was born in China, he has a legal citizenship in Canada. 
  • The Binance Strategical Officer also refuted these allegations. 

To add the things worser, Coinbase announced that it will stop the BUSD transactions from March 13, 2023.

Though we understand the rows of heated arguments and allegations from both Binance and Forbes in the past, this recent is considered as a heavy blow to the crypto markets as a whole. 

What we should understand broadly from these chain of events with the unregulated crypto markets with the following:

  • The markets may go ahead with another deeper uncertainty in the coming days;
  • many exchanges may suspend the trading of BUSD pair following coinbase,
  • further withdrawals will take place from the crypto markets 
  • various legal parameters may embrace with the Crypto world which are not good. 

The entire crypto markets were shaken hard by the continuous bad news in 2022 and started to recover from early days this year.  The news that are being coming around Binance are considered not healthy and could devast the sentiments and confidence on the Cryptomarkets by the Crypto Investors. 

Please do have a conscious approach ahead! 

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