Binance Makes Multibillion-Dollar Transfers After FTX Collapse

  • Binance has made multi-billion dollar transfers since the fall of FTX.
  • Many of these trades are associated with proof-of-reserve demonstrations by centralized exchanges.
  • A recent $2 billion transaction has caught the attention of chain whale watchers.
  • Changpeng Zhao said the transaction was to prove ownership of the wallet.
  • The exchange clarified that more of these large transactions will take place to verify the ownership of listeners.

The fall of FTX paved the way for the world’s largest crypto exchange to cement its position as the most popular exchange. Binance has been actively involved in the aftermath of FTX’s collapse, from indirectly triggering a run on the Bahamas-based exchange to paving the way for establishing greater transparency in the industry. by publishing evidence of reservations.

$2 billion transferred by Binance

Arkham Intelligence, blockchain intelligence company published a Twitter thread that took a closer look at the billions of dollars Binance has moved over the past few days. The report was sparked after on-chain whale watchers alerted crypto Twitter to a massive transfer by the exchange that involved 127,351 BTC worth just over $2 billion.

The transfer was seen as a bad sign by many on Twitter given the current crypto climate. Binance had recently released its Proof of Reserve (PoR) and users on Twitter speculated that the transfer was actually the flipping exchange of funds at the end of the PoR. CEO Changpeng soon clarified that the massive transaction was actually part of the PoR, but not how it was perceived.

“The verifier asks us to send us a specific amount to show that we control the wallet. And the rest goes to a change of address, which is a new address. In this case, the tx entry is important, as is the change.” CZ tweeted.

Binance previously released its PoR, but some still remain skeptical as the exchange has not provided any details on its liabilities, in addition to the lack of obvious segregation between its own assets and client funds.

Arkham Intelligence also shed some light on some of Binance’s other recent transfers. For example, the transfer of $1 billion of BUSD by the exchange which was supposed to be for the Industry Recovery Fund launched by CZ. Binance also received nearly $1 billion from Tether as part of its blockchain exchange from Solana to Ethereum.

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