Binance has moved 127,351 Bitcoin (CRYPTO: BTC) worth $2 billion from its proof-of-reserves to demonstrate its control over a wallet, which received a huge transfer on Monday and sparked worries among cryptocurrency users.
What Happened: Binance CEO Changpeng Zhao “CZ” explained that the transfer was part of an ongoing audit at Binance.
“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,” Zhao claimed. He added the exchange has rotated the funds to a new address in its control.
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
See More: Best Crypto Apps
CZ said in a tweet that Binance will be doing this on all cold wallet addresses in the next few hours or days. “Some won’t trigger a whale alert. It all depends on the input address. I wish Whale alert could be smarter about its reporting.”
This was not the first time Binance moved cryptos from its proof of reserves. On Nov.18, Binance moved 127,351 Bitcoins from its wallet to cold storage.
Last week, Binance pledged an additional $1 billion towards its industry recovery fund, increasing the total amount of the fund to $2 billion.
Price Action: At the time of writing, BTC was trading at $16,278 up 0.59% in the last 24 hours, according to Benzinga Pro.
Read Next: Dogecoin Shines As Bitcoin, Ethereum Muted — Chartist Says 'Break Above' This Level Presents 'Great Long Opportunity' For DOGE