Cryptocurrency exchange Binance moved $1.8 billion of collateral meant to back its customers' stablecoins to hedge funds last year, according to a Forbes article on Monday.

According to the report, Binance transferred the collateral to hedge funds including Alameda and Cumberland/DRW and did so without informing its customers. According to blockchain data from Aug. 17 to early December examined by Forbes, a period which encompassed the collapse of fellow crypto exchange FTX, holders of more than $1 billion of crypto for B-peg USDC tokens had no collateral for instruments that Binance said would be fully backed by the token they were pegged to. B-peg USDC are digital replicas of dollar-pegged stablecoin USDC.

Binance's chief strategy officer, Patrick Hillman, told Forbes that the movement of money among wallets was common practice and not a problem. "There was no commingling," Hillman said, because "there's wallets and there is a ledger."