The transfer of funds between wallets is a common practice, according to Binance's chief strategy officer, Patrick Hillman. In a statement to CoinDesk, a Binance spokesperson said that the exchange has "never invested or otherwise deployed user assets without consent under the terms of specific products" and that the transactions identified by Forbes were related to internal wallet management and did not affect the collateralization of user assets.
However, Binance has previously acknowledged that its wallet management processes for Binance-pegged token collateral have not always been flawless. At least one major stablecoin, Binance-peg BUSD, was not always fully backed, and reserves were mixed with customer funds. To address these issues, Binance recently announced that it is moving to a semi-automated process for managing the reserves of tokens it issues.
Overall, the transfer of collateral to hedge funds without informing customers raises questions about Binance's transparency and its commitment to fully backing stablecoins. While Binance has said that the move was a common practice, it underscores the need for clear communication and transparency in the cryptocurrency industry.
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