Binance has rejected speculation that it is offloading its assets, and attributes its recent balance sheet adjustments to internal financial management rather than liquidation.
On February 11th, the exchange made clear to encrypt its not engaged in asset sales. Instead, on-chain adjustments were part of the internal accounting process.
A spokesman for the company said:
“Binance doesn't sell assets. This was simply a adjustment to the accounting process for Binance Treasury. The user fund is SAFU as usual.”
After Bitcoin and Ethereum holdings fell sharply by more than 90% in January, rumors of the sale of the assets' sale have surfaced on social media platform X.
Crypto Analyst Ab Kuang.dong explained that the affected assets came from past revenues of Binance rather than user funds. He noted that a significant portion of these holdings have been converted to USDC, with Binance Coin (BNB) seeing a minimal decrease at 16.6%.
A review of Cryptoslate's Binance preliminary proof highlights these changes. On January 1st, the exchange reported significant asset surplus above the 100% customer guarantee, with most major cryptocurrencies reporting double-digit percentage collateral.
However, by February 1, 2025, this excess collateral had been significantly reduced, with some assets collateral falling to just 0.01%, while only BNB held to 12.37% in surplus.
Other crypto reserves fell, but Binance's USDC holdings rose dramatically over the same period. Extra data from Exchange shows that USDC balances have increased by more than $1 billion, with its collateral rate exceeding 40%.
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