"Before it was $400 million, now transfer $1 billion, what's next?"
After the cryptocurrency market crashed in 2022, exchange giant Binance was found to have transferred $1.8 billion worth of user assets for its own benefit similar to the FTX event.
Earlier, Sam Bankman-Fried (SBF) is the founder of FTX has transferred user assets without permission between his company and Alameda Research which he also founded.
FTX in 2022 was found to have transferred $1.8 billion in stablecoin collateral to a hedge fund, where the transferee also included Alameda Research who was able to sway the minds of crypto traders.
The transfer was made between August 17, 2022 and early December 2022 when FTX was facing a drastic fall.
Returning to the explanation, the Chief Executive Officer (CEO) of Binance Changpeng Zhao (CZ) who is actively involved on Twitter has not yet given any feedback on the issue.
Even so, the transfer sparked a debate following the Securities and Exchange Commission (SEC) of the United States (US) which claimed that the release of the stablecoin Binance USD (BUSD) by Paxos had resulted in the company having to stop the release of the digital asset.
In addition to Binance not being able to withstand regulatory pressure, the SEC will take more aggressive actions against crypto exchange companies.
Most investors chose to move their digital assets to Binance last year following concerns about FTX that shook the entire crypto market.
