Binance Moves Large Amounts Of Cryptocurrency As Part Of Its PoR Audits
Changpeng Zhao (CZ), the CEO of cryptocurrency exchange Binance, is moving large amounts of cryptocurrency as part of its proof-of-reserve (PoR) audits.
It has been reported that Binance sent 127,351 Bitcoin or more than $2 billion, to an unknown wallet on November 28, Whale Alert reported on November 28. According to on-chain data, the transaction occurred at 10:00 am UTC, costing Binance a fee of just 0.000026 BTC ($0.42).
However, the huge Bitcoin transaction immediately triggered FUD, fear, uncertainty and doubt, among the community, with many noting that Binance moved an entire fortune’s worth of BTC in one single transaction. CZ subsequently took to Twitter to announce that the massive transaction was part of Binance’s PoR audit process.
"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 big, and so is the change."
He also referred to an old tweet he posted four years ago, calling on the crypto community to “learn about blockchain transactions” and “change addresses.”
Thus, he added:
"We will be moving some funds between our cold wallets. A tell tale sign of a new cold wallet on Binance is two small transfers from and back an existing wallet, then a large transaction. No need to be alarmed."