Binance is currently auditing its proof of reserves following the collapse of crypto exchange FTX, which suffered a liquidity crisis and collapsed this month. The crypto exchange sparked some controversy after it was identified as having transferred 127,000 BTC in a single transaction to an “anonymous” wallet. With BTC trading at around $16,250 (roughly Rs. 13 lakh), Binance moved over $2 billion worth of BTC (roughly Rs. 16,324 crore), raising tensions among members of the crypto community.

Whale Alert, a blockchain tracker issued an alert about Binance’s massive BTC transaction to its over two million Twitter followers.

Soon after, hysterical tweets asking about the operational status of Binance began flooding social media.

Changpeng Zhao, CEO of Binance, dispelled all suspicions after revealing that the company is auditing its proof of reserves.

Proof of reserves are documents and proofs that show that the crypto exchange has enough assets to handle all withdrawals in the event of an emergency.

The anonymous wallet where BTC were released by Binance also belongs to the exchange.

After the crypto-shattering FTX debacle unfolded, a sense of dread gripped the psyche of crypto investors. In recent weeks, over $200 billion (roughly Rs. 16,33,290 crore) has been withdrawn from the crypto market, causing several companies and operations to shut down.

Under these circumstances, many other exchanges are also trying to regain investor confidence by providing proof-of-reserve audits.

Giottus became one of the first Indian exchanges to agree to provide proof of reserves.

Indian crypto exchange CoinDCX also recently published its list of on-chain and off-chain balances as part of its proof-of-reserve reports.

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Cryptocurrency prices on Indian exchanges

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