A popular cryptocurrency whale warning service has caught exchange Binance moving a huge amount of bitcoins to unknown wallets. The information caused fear in market investors, who ended up selling part of their bitcoins. In the last 24 hours, the price of Bitcoin has dropped by 2.2%, with the price reaching $16,100.00. With the movement causing a stir in the community, the whale alert caught Binance sending 127,351 bitcoins to an unknown wallet.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 127,351 #BTC (2,062,504,721 USD) transferred from #Binance to unknown wallethttps://t.co/zNYPuJuoRe — Whale Alert (@whale_alert) November 28, 2022
Whale Alert Catch Binance Moving Bitcoins, CEO Gets Angry
One of the current pains in the cryptocurrency market is brokers, who are still struggling to prove their reserves. The biggest exchange, and therefore the most pressured, is certainly Binance, as FTX went bankrupt while it was one of the top three. Thus, with the market noticing movements of large amounts of bitcoin out of the broker’s wallets, the fear was that some problem was in progress. However, Binance CEO Changpeng Zhao (CZ) was angered by the whale alert that detected the movement of his bitcoins. According to him, the profile reports on Twitter should be responsible and not create fears, the popular FUD. According to CZ, the move is part of an audit of Binance’s reserves, and he asked for his customers’ trust.
“This is part of the Proof of Reserve Audit. The auditor requires us to send a specific amount to ourselves to show that we control the wallet. And the rest goes to a Change Address, which is a new address. In this case, the Input tx it’s big, and so is Change. Ignore FUD!”
This is part of the Proof-of-Reserve Audit. The auditor require us to send a specific amount to ourselves to show we control the wallet. And the rest goes to a Change Address, which is a new address. In this case, the Input tx is big, and so is the Change. Ignore FUD! https://t.co/36wUPphIZk pic.twitter.com/2NkH5L5J9j
— CZ 🔶 Binance (@cz_binance) November 28, 2022
“We will send more bitcoin to new wallets in the coming days”, says CEO
While many traders were unwilling to pay to see what the nebulous Binance situation was, the CEO ensures that clients’ funds are safe. In any case, in the next few days the brokerage will once again move large amounts of bitcoin, which second CZ, is a requirement of auditors.
“We will be doing this on all cold wallet addresses in the next few hours/days. Some don’t trigger a whale alert. It all depends on the incoming address. I wish Whale Alert could be smarter about its reporting.”
Binance Makes “Clear Trouble” Move, Says CEO
The curious thing about the story is that a few days ago the CEO of Binance himself said that if an exchange needs to move large amounts of cryptocurrency before or after demonstrating its wallet addresses, “It’s a sure sign of trouble. Stay away.”
If an exchange has to move large amounts of crypto before or after they demonstrate their wallet addresses, it is a clear sign of problems. Stay away. stay #SAFU🇧🇷 🙏 — CZ 🔶 Binance (@cz_binance) November 13, 2022
The fear of the fall of brokerages, the withdrawal of withdrawals, among other situations, lead market investors to avoid the platforms. Audits are then sought by management to convince that everything is right. Finally, it is unclear when Binance will submit its audit, while the market closely monitors movements between wallets.
