Binance moves $2.7B out of proof of reserve wallet – Is the crypto market in danger again?

Binance has acknowledged the ‘undisclosed wallets’ as one of its TRX cold wallets.

In the next few weeks, the cryptocurrency exchange has disclosed that it is working with Vitalik Buterin to create a Merkle tree proof of reserves (POF).

After publishing details of its hot and cold wallet to showcase the proof of reserves, the Binance cryptocurrency exchange has moved approximately $2.7 billion in USDT without making official statements. The transaction was observed and published by Redditor u/OneThatNoseOne, who prompted Binance’s response. While the transaction has not been flagged as high risk, the FTX meltdown has instilled fear in centralized exchanges.

2/ @binance Reserve & Netflow

Massive $BTC inflow occurred in the past 12 hours, according to the data from Proof of Reserve. @cryptoquant_com ‘s original labeled data shows that this flow was from Binance Pegged-Bitcoin(BTCB) reserve to Binance cold wallet. pic.twitter.com/iz15H47hmd

— CryptoQuant.com (@cryptoquant_com) November 18, 2022

The cryptocurrency exchange has defended its action as standard internal procedures, citing that a more transparent verification system is in the pipeline. 

However, the Redditor explained that Binance has been making more internal transactions with customers’ funds without official statements. The Redditor noted;

There are also some additional funds missing from other wallets in their proof of reserves snapshot. The second Tron Binance wallet is missing around 2.4 Billion, and the third is missing 500 Million(screenshots in Appendix). The bulk of these funds seem to have gone missing on the 14th Nov,

Binance has acknowledged the ‘undisclosed wallets’ as one of its TRX cold wallets. Binance replied;

We can confirm that the ‘undisclosed wallet’ mentioned here, ending with WkJFo, is one of Binance’s TRX cold wallets. The asset movements you’re highlighting result from standard operations which move funds between our internal wallets,

In the next few weeks, the cryptocurrency exchange has disclosed that it is working with Vitalik Buterin to create a Merkle tree proof of reserves (POF).

Is Binance signaling danger in the cryptocurrency market?

The collapse of FTX and its subsidiaries has significantly shaken the confidence in centralized crypto exchanges. While the FTX case gets investigated by several jurisdictions, Bitcoin price continues to trade below $17k, $2000, away from the prior support level. As such, another collapse of a major crypto exchange could trigger a significant decline toward $10k.

According to our latest crypto price oracles, Bitcoin is exchanging hands at around $16,815, down approximately 4.5 percent in the past seven days. The total crypto market cap is over $140 billion, shy of the $1 trillion market and way below its ATH of around $3.2 trillion.

While some altcoins like Chiliz (CHZ) and Trust Wallet (TWT) show signs of decoupling from Bitcoin dependence, the digital asset economy is heavily dependent on the success of the Bitcoin market. 

With Bitcoin price down approximately 75 percent from its ATH – below its 2017 all-time high – the probability of further capitulation remains high. Tech billionaire Elon Musk recently highlighted that Bitcoin would survive in the long term, but the ongoing winter May take longer.

Der Beitrag Binance moves $2.7B out of proof of reserve wallet – Is the crypto market in danger again? erschien zuerst auf Crypto News Flash.

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