Whale Alert, a blockchain tracker, alerted its over two million followers on Twitter to this massive BTC transfer by Bianace.
Soon after, social media was flooded with tweets inquiring about the operational status of Binance.
To put an end to all these questions, Binance CEO Changpeng Zhao revealed that the company is conducting its proof-of-reserves audit. Proof of Reserves are documents that show whether a crypto exchange has enough assets to handle all withdrawals in the event of an emergency.
This is part of the Proof-of-Reserve Audit. The auditor requires 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 large, and so is the Change. Ignore FUD! https://t.co/36wUPphIZk pic.twitter.com/2NkH5L5J9j
— CZ 🔶 Binance (@cz_binance) November 28, 2022
The unknown wallet to which these BTC were sent is also said to be related to Binance exchange.
After Binance’s FTX exchange crashed to ashes, fear prevailed among investors. In recent weeks, the crypto market has crashed by more than $200 billion (roughly Rs. 16,33,290 crores), causing many companies and operations to shut down.