Binance’s Dwindling Crypto Reserve Might be Related To A Year Old Lawsuit

The market is definitely in turmoil due to all the macroeconomic developments. As a result, many experts are on edge about the future of their crypto investments. To make things more surprising, Binance’s POR or Proof of Reserves shows that Binance managed to offload billions of assets. Some investors are questioning and doubting this move and are wondering what the exchange is aiming for. 

A sharp and unprecedented depletion of Bitcoin, Ethereum, Solana, and Tether exchange holdings has raised investor concerns. This move could affect the broader market stability. Which can already prove detrimental for a community that is on edge already.  

Dwindling Reserve Of Binance 

Binance held a total of $14 billion as non-customer holdings back in December 2024. The total valuation of the assets was as follows: 46,896 BTCs, 216,312 ETHs, 442,234 SOLs, and 2.99 billion USDTs. This is very different from what Binance is holding as of February 10th.  

As of February 10th, Binance has depleted nearly 100% of its crypto reserves of coins like USDT, ETH, BTC, and SOL holdings. The data received shows that the platform is just holding 4,179 SOLs, 174 ETHs, 2,746 BTC, and 275.7 million USDTs. As per data, Binance just lost around $8 billion in crypto. This sharp decline of crypto reserve in Binance concerns investors operating in the landscape.  

As of now, there has been no official statement for the decline. However, prominent crypto analyst AB Kuai Dong states, “Currently, most cryptocurrencies have been reallocated into the stablecoin USDC. Among these, BNB has the lowest reduction rate, at only -16.6%. If we look at the market conditions from January, most cryptocurrencies were at their historical highs.” Meanwhile, other sources suggest that this was done in an attempt to pay regulatory fines.  

In February 2024, Binance was slapped with a regulatory fine of $4.3 billion. The primary accusation against the exchange was that it used its power to launder money. The plea resulted in Binance paying $1.81 billion in criminal fines and forfeiting $2.52 billion in assets. Moreover, ex-Binance CEO Changpeng Zhao was also imprisoned. Therefore, sources inferred that the dwindling reserve is connected to the legal fiasco. Follow for more crypto news.