Binance sends $2 billion in Bitcoin to unknown wallet costing them just $0.42

Binance CEO, Changpeng 'CZ' Zhao has taken to Twitter to try and explain the massive $2 billion transaction of Bitcoin to an unknown wallet address.

Binance sends $2 billion in Bitcoin to unknown wallet costing them just $0.42
Published   |   Updated Fri, Jan 13 2023 6:33 AM CST
2 minutes & 53 seconds read time

Binance has sent a whopping $2 billion worth of Bitcoin to an unknown wallet address, amounting to a total of 127,351 Bitcoin sent in a single transaction.

Binance sends $2 billion in Bitcoin to unknown wallet costing them just $0.42 04

Whale Alert reported the transaction occurred on November 28, with on-chain data suggesting that the $2 billion was sent at 10:00 AM UTC and only cost Binance a fee of 0.000026 BTC, or $0.42. Following the collapse of what was the world's second-largest cryptocurrency exchange, FTX, many cryptocurrency holders are justifiably concerned with the movements of cryptocurrency exchanges, especially ones of such large volumes.

Unsurprisingly, the transaction caused a ripple effect of fear, uncertainty, and doubt (FUD) to spread online, which sparked a response from Binance CEO Changpeng "CZ" Zhao, who took to Twitter to explain that the $2 billion transaction was a part of Binance's proof-of-reserve (PoR) audits. These audits are to demonstrate that the cryptocurrency exchange holds the same number of funds it publicly claims to have, hence "proof-of-reserve".

The Binance CEO wrote on Twitter that the auditor has required the exchange to send a specific amount to another wallet address to prove that Binance is in control of the wallet. Additionally, Zhao wrote that the remaining funds go to a "change address, which is a new address. In this case, the input tx is big, and so is the change."

Binance sends $2 billion in Bitcoin to unknown wallet costing them just $0.42 02

Zhao doubled down with a follow-up tweet that targeted investors who are believing the FUD that is being spread because of the transaction. Zhao wrote, "I know it's hard. If you thought a fraudster is legit, you probably are already poor. But... If you believe FUD all the time, you will also likely to be poor. Life is not easy."

Notably, Zhao warned just earlier this month, on November 13, that it's a bad sign if an exchange has to move large amounts of cryptocurrency "before or after they demonstrate" their wallet addresses. Adding that the movement is a "clear sign of problems. Stay away. Stay #SAFU."

Binance sends $2 billion in Bitcoin to unknown wallet costing them just $0.42 03

The fall of FTX has put targets on the back of cryptocurrency exchanges, with investors now inquiring about the exchange's reserves while simultaneously flocking to pull assets out of the exchanges and onto self-custody wallets. On November 14, on-chain analytics firm Glassnode reported that the number of Bitcoin withdrawals from centralized exchanges has hit a 17-month high of 3,424.315. If you are interested in reading more on that story, or anymore cryptocurrency-related news check out the above and below links.

In other news, China has reportedly tried to stop the spread of information about protests erupting nationwide through the implementation of a great wall of porn. The believed to be Chinese government linked great wall of porn coincidently appeared when searching major Chinese city names on Twitter, in what seems to be a bot accounts spamming X-rated content such as Chinese escort services, images and more.

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NEWS SOURCE:cointelegraph.com

Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science and space news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms. Instead of typical FPS, Jak holds a very special spot in his heart for RTS games.

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