Binance Cold Wallet Transfers $3.9 Billion Worth of USDT Days Before Guilty Plea

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Binance Cold Wallet Transfers $3.9 Billion Worth of USDT Days Before Guilty Plea

Hey there, crypto enthusiasts! Have you heard the latest news about Binance? It turns out that one of their cold wallets sent a whopping $3.9 billion worth of USDT (Tether) to another Binance wallet just days before the company’s settlement with the US Department of Justice (DOJ) was announced.

Now, you might be wondering, what’s the big deal? Well, let me tell you. This massive transaction caught the attention of on-chain data analysts, who promptly identified the source of the funds as one of Binance’s cold wallets. And get this – the wallet that received the funds has a total of $6.6 billion worth of assets remaining, with a transaction history of over 2498 transactions since it was created back in 2018!

So, what does this mean for Binance? Well, it’s possible that the company was moving funds around to cover some of its own expenses, or maybe it was preparing for a potential settlement with the DOJ. Either way, it’s clear that Binance has been busy managing its assets ahead of the settlement.

In case you missed it, Binance CEO Changpeng Zhao has already pleaded guilty to various federal charges, and the company has agreed to pay a criminal fine of $1.8 billion. Additionally, $2.5 billion will be forfeited, with $1.6 billion of that going towards resolving issues with the Commodity Futures Trading Commission (CFTC), the Financial Crimes Enforcement Network (FinCEN), and the Treasury’s Office of Foreign Assets Control (OFAC).

It’s worth noting that Binance has a total of 12 publicly tagged wallets, with six hot wallets and three cold wallets. The remaining three wallets are simply labeled “Binance 1,” “Binance 2,” and “Binance 3.”

So, there you have it – Binance has been keeping busy ahead of its settlement with the DOJ. Whether this massive transaction was a move to cover expenses or prepare for the settlement, it’s clear that the company is taking steps to manage its assets.

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