Binance, a popular crypto exchange, has stated that the reports of large Bitcoin (BTC) outflows were false. Despite several data aggregators reporting outflows of up to 190,000 BTC in the last two days, the exchange stated that the reported outflows were internal movements between its hot and cold wallets, due to its address adjustments. These reports caused concern among the crypto community members about the exchange’s balance.
Clarification
Binance’s clarification was made via Twitter on May 8. The CryptoQuant head of research, Julio Moreno, stated that the “two transactions of 117,000 and 40,000 Bitcoin” were “sent to newly created change addresses that belong to Binance.” Moreno added that the outflows from Binance were likely around 10,100, which was a far more muted figure than the reports suggested.
Joe Consorti, a market analyst at Bitcoin Layer, further supported Binance’s clarification, stating that “Binance has actually NOT seen a huge drawdown in its Bitcoin balance.” Consorti explained that the issues were caused by improperly labeled wallets by different service providers, causing regular wallet shuffling to look like deposit outflows. He also added that the BTC outflows over the last week were only -11,000.
Binance also stated that DeFiLlama data showed accurate information about its wallet movement. According to the data, the exchange has Bitcoin worth $16.9 billion in the exchange, and the total value of assets on the platform is worth $65.61 billion.
Furthermore, Binance stated that it was working on enabling support for Bitcoin lightning network as it had to pause withdrawals twice in 24 hours due to network congestion issues.
In conclusion, Binance has clarified that the reports of large Bitcoin outflows were false. The exchange stated that the reported outflows were internal movements between its hot and cold wallets, due to its address adjustments. The clarification has eased the concerns of the crypto community members about the exchange’s balance. Binance also stated that it was working on enabling support for Bitcoin lightning network due to network congestion issues.