Binance, a cryptocurrency exchange, has recently clarified that reports of large volumes of Bitcoin outflows were false. On May 8th, the exchange stated that reported “outflows” were actually just internal movements between hot and cold wallets due to address adjustments. Data from Coinglass showed that Binance experienced outflows of around 180,000 BTC in the last 24 hours. CryptoQuant data also showed that the exchange saw outflows of nearly 190,000 BTC in the last two days. These reports caused concerns among crypto community members who worried about Binance’s balance.
However, CryptoQuant’s head of research, Julio Moreno, reported that the “two transactions of 117,000 and 40,000 Bitcoin” were “sent to newly created change addresses that belong to Binance.” Moreno added that outflows from Binance were likely around 10,100. Analyst Joe Consorti noted that “Binance has actually NOT seen a huge drawdown in its Bitcoin balance.” Consorti stated that the issues were caused by improperly labeled wallets by different service providers, causing regular wallet shuffling to look like deposit outflows. He added that “In reality, the BTC outflows are far more muted, only -11,000 over the last week.”
Binance said that DeFiLlama data showed accurate information about its wallet movement. According to the data, the exchange has Bitcoin worth $16.9 billion and the total value of assets on the platform is worth $65.61 billion. Binance announced earlier today that it is working on enabling support for Bitcoin lightning network due to the network congestion issues that forced it to pause withdrawals twice in 24 hours.