Doubts Surface Over $500 Million Binance Coin (BNB) Transactions for Only 3 Cents, CEO Issues Clarification

Bhushan Akolkar
By Bhushan Akolkar
Posted on Nov. 29, 2018
Doubts Surface Over $500 Million Binance Coin (BNB) Transactions for Only 3 Cents, CEO Issues Clarification

The Twitter handle of Whale Alert, a popular cryptocurrency wallet tracker, found a strange and suspicious incident that took place on Wednesday night. Whale Alert started to record million-dollar transaction taking place in quick succession. Initially, all the transfers seemed normal as they were basically ERC-20 token transfers. 

However, as Whale Alert continued to monitor the transactions and tweet simultaneously, the possibility that ‘something ain’t right’ came to the surface. 

Whale Alert reported that 98,776,172 Binance Coins (BNB), worth a whopping $512 million, are transferred from Binance to other “unknown address”. Furthermore, the data on Etherscan shows that the huge amount was transferred for just $0.03 gas fees on the Ethereum blockchain network. 

This clearly underscores the core ethos of cryptocurrencies being a border-less, near-instant, decentralized, and trestles medium of value. 

Nearly Entire Market Cap of Binance Coins Moved

As the crypto community was alerted by ‘Whale Alert’, a popular crypto-fanatic, analyst and commentator @IamNomad joked that Binance Coin’s “entire market cap moved,”. Taking a dig at Binance, he further asked whether the transaction was linked to the exchange use of its “new cold wallets”. 

He also roped-in Binance’s support team to get an answer on this suspicious transactions. Nomad said that the support team assured that “fundos are SAFU” meaning that the funds are safe referring to popular crypto joke for 2018. 

But not being satisfied with the answer, Noman made another tweet tagging Binance CEO Changing Zhao. Nomad tweeted: “Binance support says "fundos are safu"  but not going into details. New infrastructure ? Bitgo,? Rekt? @cz_binance @binance”

Soon as the matter got heated, Binance CEO responded to it saying that the address in question, that currently holds nearly $1.2 billion in ERC-20 tokens, is part of the exchange’s efforts to step-up its operational security. 

Zhao tweeted: “Nothing to worry about.  Check the tx logs, plenty of tx FROM the new address TO our old wallets.  No need to spread FUD.  We are constantly working on beefing up our security even more.”

Binance Unleashes The True Power of High-Value Crypto Transactions At Low Cost

For now, it looks like the case is almost settled. However, this is not for the first time that such huge-value transaction occurred at such a low cost. Two weeks back, Binance facilitated a record-breaking transaction worth $600 million or 109,000 BTC at the transfer fee of just $8. 

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