Binance, one of the leading cryptocurrency exchanges, recently made a significant transaction involving its wallets. On-chain data reveals that a total of $3.9 billion worth of Tether (USDT) was moved between Binance wallets. This comes amidst the exchange’s ongoing negotiations to pay a $4.3 billion penalty to the Department of Justice.
Transfer between Binance wallets
The majority of the funds, which amounted to $3.9 billion, were transferred from one Binance cold wallet, known as Binance-Cold 2, to another wallet labeled Binance 3. Currently, the Binance cold wallet holds a total of $6.6 billion, consisting of $4 billion in USDT and the remainder in various stablecoins, such as Decentralized USD (USDD), USDC, and TrueUSD (TUSD).
The destination wallet, Binance 3, now holds a whopping $3.2 billion in assets, with the majority of it being Tether’s USDT stablecoin.
Utilization of funds
It remains unclear whether Binance plans to utilize these funds to settle the imposed fine or if the company intends to convert the USDT into US dollars or another fiat currency. Binance’s newly appointed CEO, Richard Teng, has expressed confidence in the company’s financial stability and ability to pay the $4.3 billion fine imposed by the US Justice Department.
Teng’s remark followed a statement by Connor Lango, director of business development at Coinbase, who suggested that Binance would be able to pay the fine without selling any of its crypto assets. Lango discovered that after evaluating Binance’s Proof of Reserves, the exchange still had a total of $6.35 billion in assets, with $3.19 billion in stablecoins.
Settlement with the US Department of Justice
On Tuesday, Binance, along with its CEO Changpeng Zhao, pleaded guilty to criminal charges related to anti-money laundering and violations of US sanctions. The plea was made as part of an agreement reached with the US Department of Justice, allowing the company to continue its operations. Changpeng Zhao will step down as CEO, and Binance will be obligated to pay a substantial $4.3 billion fine. Additionally, Zhao himself will personally pay $200 million in fines.
Potential impact on Bitcoin ETF approval
Industry experts believe that the settlement between Binance and the Department of Justice could have a significant impact on the approval of a regulated Bitcoin ETF. Research reports indicate that this plea deal might pave the way for a Bitcoin ETF to be approved by regulators. This positive outcome benefits both Binance founder Changpeng “CZ” Zhao and the company itself, ensuring their continued success in the cryptocurrency market.
