‘Huge BTC Transaction Part of POR Audit,’ Claims Binance CEO

• Changpeng Zhao announced that the transfer of BTC worth $2 billion was a part of the Proof-of-Reserve Audit.
• The fund was apparently transferred under an auditor’s request to show that the wallet is under the company’s hold.
• Zhao added that the fund is safe and is transferred to another account under the control of the company.

After the significant flow of more than 127,000 BTC in a single transaction, Binance CEO Changpeng Zhao clarified that the company transferred the fund under the requirement of an individual auditor to prove the company has control over the wallet.

Zhao tweeted that the transaction was just a part of the Proof-of-Reserve Audit:

In addition, CZ informed investors that the whole fund had been transferred into another account under the company’s control.

Previously, Binance launched the Proof-of-Reserve system intending to show the community that the company could hold the reserves necessary to cover all customer funds.

As per the reports of Whale Alert, the huge transaction of 127,351 BTC worth $2 billion took place at 10.00 am UTC, which triggered FUD within the community.

However, the quick response of CZ clarifying the objective of the transaction as a part of the Proof-of-Reserve contributed to eliminating the elements of FUD in the community to an extent.

Nonetheless, many BTC investors came in, expressing their concerns regarding the $2 billion BTC transaction. One of the community members Mira Christanto claimed that “there is no requirement to move funds at all”. Similarly, the crypto investor CoinMamba explained the way in which the transaction works:

Furthermore, the Binance CEO reshared one of his old posts, published in October 2018, referring to learning “blockchain transactions and Change Addresses”. The post explains fund transfers between cold wallets.