Despite the large amounts being removed, data suggests that Binance remains the exchange with the largest BTC balance.
Top crypto exchange Binance has shared its recent move which saw it transfer massive amounts of Bitcoin (BTC) to a new blockchain address. According to the crypto firm, it recently moved at least nine figures worth of BTC but assures users of the safety of their funds. Per Binance, the funds are now safely tucked away in cold storage.
Meanwhile, analytic firm Blockchain.com has also run a check on the new cold storage. This was done to verify Binance’s claims. According to Blockchain.com data, the said address received 15,000 BTC, in the early hours of Monday. That is worth around $402 million as of press time. The analytic firm also found another transaction where 117,000 BTC was transferred from one of Binance’s old cold wallet addresses to a new one. The single transaction is worth over 3 billion dollars.
Further confirming Blockchain.com’s data, a similar analytic firm Bitinfocharts says that a total of 130,000 BTC left Binance’s cold wallet on Monday.
Despite the large amounts being removed, Coinglass data suggests that Binance remains the exchange with the largest BTC balance. As of publication, its BTC balance stands at 510,425, while the closest exchange is Coinbase Pro with 486,568 BTC.
Is Trouble Looming for the Binance Exchange?
Recently, there has been one issue or the other with the exchange, thereby raising concerns among users and all stakeholders. Firstly, the exchange is currently being sued by the US Securities and Exchange Commission (SEC) for violating United States securities laws.
Furthermore, there have been claims that Binance’s proof of reserves is questionable. After FTX collapsed in November 2022, the exchange felt the need to publish its reserve report. This was necessary to allay the fears of its users. As it turned out, however, the December report where it claimed that its user funds were 101% backed, is also now being questioned. More so, since the company that carried out the audit has also forward to distance itself from anything crypto-related.
Lastly, Reuters also reported in May that Binance may have been mixing user deposits with corporate funds within its bank accounts at the now-defunct Silvergate Bank and Signature Bank. However, the exchange has since responded to the claims. In its counterclaim, Binance insists the deposits in question were moved to convert them into BUSD stablecoins inside user accounts.
Generally, there is an air of uncertainty in and around the Binance exchange for now. However, the exchange alongside its CEO Changpeng Zhao, has a track record of making it out of the tunnels.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this.
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