Binance significantly reduced its holdings of Bitcoin (BTC) and Ethereum (ETH) in January and converted the majority of its assets to the stablecoin USDC, triggering concerns within the community about asset security. However, analysis indicates that this may be merely an internal asset adjustment or a response to regulatory requirements.
According to KOL AB Kuai.Dong’s statistics, Binance drastically decreased its own Bitcoin (BTC) and Ethereum (ETH) holdings in January, shifting a large portion of its assets to the stablecoin USDC. This move quickly drew widespread attention and panic from the market and community, with many questioning whether there are deeper underlying issues behind the disappearance of assets, although some analysts suggest it could be a mere internal adjustment of the official wallet.
Concerns Arise from Binance’s Own Fund Changes
Binance’s own cryptocurrency holdings saw a significant decrease, while the amount of stablecoin USDC holdings notably increased. The specific statistics are as follows:
BTC holdings: reduced from 46,896 coins to 2,747 coins, a decrease of 94.1%.
ETH holdings: decreased from 216,313 coins to 175 coins, a decrease of 99.9%.
SOL holdings: decreased by 99%.
USDT holdings: nearly zero, a decrease of 99.9%.
BNB holdings: a relatively smaller decrease of 16.6%, from 5.839 million coins to 4.869 million coins, a decrease of approximately $615 million.
Meanwhile, Binance’s USDC holdings increased by 57.5%, rising from 805 million coins to 1.268 billion coins, an increase of about $463 million.
These data primarily reflect changes in the platform’s own funds, not user assets. However, such a massive shift still sparked market panic, with many users concerned whether the reduction of assets signifies a potential financial crisis or fund misappropriation.
Simultaneously, KOL Symbio supplemented Binance’s latest reserve proof:
Binance’s latest reserve proof shows that it sold off $8 billion of assets in January, accounting for a significant portion of its $14 billion assets, including almost all BTC, USDT, and all ETH.
Community Conspiracy Theories Abound
The news of Binance’s asset changes quickly spread within the crypto community, with many users expressing concerns on social platforms and various conspiracy theories emerging, suggesting that Binance may be facing financial difficulties or regulatory crackdowns, leading to an urgent restructuring of asset structure. However, Binance’s reserve proof remains intact.
Asset Disappearance Sparks Concerns
The substantial “sell-off” of BTC and ETH continues to raise doubts within the community about the platform’s fund security. Some community members believe that such large-scale reductions may signal financial strain in the chain of funds, even worrying whether Binance is under hidden debt pressure or impending legal risks.
Wallet Adjustment or Internal Asset Reorganization?
Despite the prevailing panic in the market, some professionals believe that Binance’s asset changes may simply be adjustments of internal wallet addresses or asset reorganization, not necessarily indicating actual asset losses. Binance has conducted similar operations in the past, such as transferring assets from cold wallets to other wallets for management, which are common practices at a technical level.
Regarding this phenomenon, f2pool and the founder of the cryptocurrency asset custody company Cobo, Shenyu, pointed out that this may be a behavior of profit provision by Binance at the beginning of the year, similar situations occurred in June 2023 (Binance reached a $4.3 billion settlement agreement with the US Department of Justice) and in February 2024, making the timing appear not unusual.
While the market is filled with concerns about Binance’s asset changes, from a technical perspective, this reduction may not directly indicate financial problems. Binance has conducted numerous large-scale asset adjustments in the past, which may be merely for optimizing asset allocation or enhancing liquidity, especially in the increasingly stringent regulatory environment for exchanges.
Furthermore, Binance’s shift to holding USDC and other stablecoins may also be aimed at reducing the risks posed by cryptocurrency volatility or preparing for potential market fluctuations.