Doubtful. I would like to see facts backing this up. If true, that is something I would discontinue using immediately if that were the case, but I've been using it for years on multiple setups without any problems. IF that were a problem, I would expect Moon Audio and ALO themselves to notify or warn anyone against it during purchasing. Both offer 3.5mm to Balanced cables and interconnects. Why offer a potentially dangerous plug choice?
I use my Balanced to 3.5mm interconnect on my AudioEngine A5 Speakers, going from my Dac/Amps Balanced RSA/ALO output to the A5s 3.5mm input. I also go from my portable sources 3.5mm output to the Amplifiers Balanced input, always using the same interconnect depending on if I want to listen to my JH16s or my Speakers. Never encountered any problems at all.
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You never want to use an adapter to go from an RSA balanced output to a standard termination. You could cause an overload. If you only need single ended, take a look at the Predator. If you want both, look at the SR71B...