Binance Says Bitcoin Outflows Are Internal Wallet Movements

Binance Says Bitcoin Outflows Are Internal Wallet Movements

Binance, a crypto exchange, has denied reports from various data aggregators regarding a high volume of Bitcoin (BTC) outflows. The exchange clarified that the reported “outflows” were internal transfers between its hot and cold wallets, as a result of address adjustments.

Despite this, reports from Coinglass and CryptoQuant data indicated outflows of approximately 180,000 BTC and nearly 190,000 BTC, respectively, over the past 24 to 48 hours. These figures sparked concern among some members of the crypto community regarding the exchange’s balance.

However, Julio Moreno, the head of research at CryptoQuant, revealed that the outflows were only around 10,100 BTC, as the rest of the transactions were sent to newly created change addresses owned by Binance.

A market analyst at Bitcoin Layer Joe Consorti noted:

Binance has actually NOT seen a huge drawdown in its Bitcoin balance.

The reason for the issues, as explained by Consorti, was due to mislabeling of wallets by various service providers. This caused routine wallet reshuffling to appear as if there were withdrawals being made. Consorti clarified that the actual BTC outflows were much lower, at only -11,000 over the past week.

On the other hand, Binance stated that DeFiLlama’s data provided accurate information about its wallet movements. As per the data, the exchange currently holds Bitcoin valued at $16.9 billion, and the total worth of assets on the platform amounts to $65.61 billion.

Binance also announced that it is actively working to enable support for the Bitcoin lightning network. This move is in response to the network congestion issues that caused the exchange to pause withdrawals twice within 24 hours.

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