Binance is currently being audited for proof of reserves following the collapse of crypto exchange FTX, which suffered a liquidity crunch and collapsed this month. The crypto exchange has caused some controversy after it was determined to have moved 127,000 BTC in one transaction to an ‘anonymous’ wallet. With BTC trading at around $16,250 (approximately Rs 13 lakh), Binance transferred over $2 billion worth of BTC (approximately Rs 16,324 crore), increasing tension among members of the coin community. electronic.
Whale Alert, a blockchain tracker that sounds alerts about by Binance Huge BTC trading for over two million followers on Twitter.
:rotating_light: :rotating_light: :rotating_light: :rotating_light: :rotating_light: :rotating_light: :rotating_light: :rotating_light: :rotating_light: :rotating_light: 127.351 #BTC ($2,062,504,721) transferred from #Binance to unknown wallethttps://t.co/zNYPuJuoRe
– Whale alert (@whale_alert) November 28, 2022
Soon after, hysterical tweets asking about the status of Binance started flooding on social media.
Changpeng ZhaoThe CEO of Binance quashed any doubts after he revealed that the company was being audited for proof of reserves.
Proof of Reserve is the document and evidence that a cryptocurrency exchange have enough assets to handle all withdrawals in case of an emergency.
This is part of the Proof of Reserve Test. The auditor asks us to send a specific amount to ourselves to prove that we control the wallet. And the rest goes to Changed Address, which is a new one. In this case, Input tx is large and so is Change. Skip FUD! https://t.co/36wUPphIZk pic.twitter.com/2NkH5L5J9j
— CZ :large_orange_diamond: Binance (@cz_binance) November 28, 2022
Anonymous wallet where BTC dropped by Binance also belongs to the exchange.
Post the progress of the crypto vandalism FTX problem, the feeling of fear has overwhelmed the spirit of crypto investors. In recent weeks, more than $200 billion (approximately Rs 16,33,290) has been wiped out of the crypto market, resulting in the closure of several companies and operations.
Under such circumstances, many other exchanges are also trying to regain investor confidence by providing audits of proof of reserves.
Giottus became one of the first Indian exchanges to agree to provide proof of reserves.
of India CoinDCX cryptocurrency exchange also recently published on-chain and off-chain balance lists as part of its proof of reserve report.
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