The transfer of 127,351 BTC ($2 billion) from a whale Binance crypto wallet sparked controversy. CEO Changpeng Zhao (CZ) clarified that as part of a proof of reserves audit, it was necessary to send a specific amount to prove control of the wallet.
“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,” he tweeted.
Also Read: Binance Shares Details of Wallet Addresses for Transparency
Proof of reserves is becoming increasingly popular, especially in light of the FTX’s demise and recent comments from Binance about the importance of transparency. A PoR audit of a cryptocurrency company allows customers to confirm that their digital asset service provider is adhering to strict accountability standards.
