Binance Wallets Move Approximately $4 Billion in Stablecoin Ahead of DOJ Settlement
Binance wallets have moved $3.9 billion worth of Tether (USDT) in a recent transaction amid the exchange’s pending $4.3 billion penalty that it agreed to pay to the Department of Justice.
On-chain data shows that the majority of the funds were transferred from one Binance cold wallet, known as Binance-Cold 2, to another wallet called Binance 3.
Currently, the cold wallet holds a total of $6.6 billion, with $4 billion in USDT and the remainder in various stablecoins such as Decentralized USD (USDD), USDC, and TrueUSD (TUSD).
The destination wallet now holds $3.2 billion in assets, primarily consisting of Tether’s USDT stablecoin.
Binance has previously stated that its cold wallets are responsible for holding the majority of the company’s funds.
However, it remains unclear whether Binance intends to utilize these funds to settle the fine imposed by the U.S. government, or if the company plans to convert the USDT into U.S. dollars or another fiat currency.
As reported, new Binance CEO Richard Teng has hinted at the exchange’s ability to pay the $4.3 billion it has been fined by the US Justice Department.
Teng, who was named CEO of Binance on Tuesday after Changpeng Zhao stepped down, said in a recent post on X (formerly Twitter) that the exchange is in good shape financially.
The statement came in reply to a post by Connor Lango, director of business development at Coinbase, who said Binance will most likely be able to “pay full $4.3B DoJ fine with 0 crypto asset sales.”
Lango detailed that after pulling out Binance’s crypto holdings from their Proof of Reserves, he discovered that the exchange still had $6.35 billion in total assets and $3.19 billion in stablecoins.
On Tuesday, Binance, along with its CEO
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