Binance says Bitcoin ‘outflows’ are internal wallet movements Binance says Bitcoin ‘outflows’ are internal wallet movements
Binance’s reported Bitcoin outflows caused concerns among crypto community members who were worried about its balance.
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Updated: May. 8, 2023 at 4:20 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto exchange Binance has clarified that the large volume of Bitcoin (BTC) outflows most data aggregators reported was false.
According to a May 8 tweet, the exchange said the reported “outflows” were internal movements between its hot and cold wallets due to its address adjustments.
In the last 24 hours, Coinglass data showed that Binance experienced outflows of around 180,000 BTC.
This was further corroborated by CryptoQuant data that showed the exchange saw outflows of nearly 190,000 BTC in the last two days.
These reported outflows caused concerns among several crypto community members who expressed worry about the exchange’s balance.
However, CryptoQuant head of research Julio Moreno reported that the “two transactions of 117,000 and 40,000 Bitcoin” were “sent to newly created change addresses that belong to Binance.”
Moreno added outflows from Binance were likely around 10,100.
A market analyst at Bitcoin Layer Joe Consorti noted that “Binance has actually NOT seen a huge drawdown in its Bitcoin balance.”
According to Consorti, the issues were caused by improperly labeled wallets by the different service providers — causing regular wallet shuffling to look like deposit outflows. He added:
“In reality, the BTC outflows are far more muted, only -11,000 over the last week.”
Meanwhile, Binance said 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.
Earlier today, Binance said it was working on enabling support for Bitcoin lightning network due to the network congestion issues that forced it to pause withdrawals twice in 24 hours.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
