Binance, one of the largest cryptocurrency exchanges, has recently clarified that the reported outflows of Bitcoin (BTC) were actually internal movements between its hot and cold wallets. This news comes after data aggregators reported that the exchange experienced large volume outflows of the popular digital asset, causing concern among crypto enthusiasts. After thorough analysis, it has been revealed that the information previously reported was actually due to address adjustments within the exchange’s system.
Binance’s Outflows Clarified
Recently, several data aggregators reported that Binance saw significant outflows of BTC. Coinglass data showed that in the past 24 hours alone, the exchange experienced outflows of around 180,000 BTC. This was further corroborated by CryptoQuant data that showed nearly 190,000 BTC outflows in the last two days. These reports caused panic among some members of the crypto community as they expressed concern about the exchange’s balance.
However, Binance has now clarified that these outflows were only internal wallet movements. CryptoQuant head of research, Julio Moreno, stated that only “two transactions of 117,000 and 40,000 Bitcoin” were “sent to newly created change addresses that belong to Binance”. Moreno added that the actual outflows from the exchange were likely only around 10,100.
Wallet Labeling Issues
According to market analyst Joe Consorti of Bitcoin Layer, the outflow issues were caused by improper labeling of wallets by different service providers. This caused regular wallet shuffling to look like deposit outflows. In reality, the BTC outflows were far less dramatic, only -11,000 over the last week.
Accurate DeFiLlama Data
Binance also highlighted DeFiLlama data, which provided accurate information about its wallet movement. This data revealed that the exchange currently has Bitcoin worth $16.9 billion and total assets on the platform worth $65.61 billion.
Moving Forward
Binance has stated that it is working on enabling support for Bitcoin’s Lightning network, due to network congestion issues that forced the exchange to pause withdrawals twice in one day. This move is intended to provide faster and cheaper transactions for users. Additionally, the exchange plans to continue being transparent about its wallet movements and ensure accurate reporting of its financial status.
