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Binance Had Sent $3.9 Billion From a Cold Wallet Days Before the Agreement

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The recent guilty plea and agreement by Binance, along with its former CEO Changpeng Zhao, shed light on a transaction involving a significant amount of USDT and other stablecoins.

Specifically, on November 9th, Binance transferred $3.9 billion in stablecoins from one of its cold wallets, identified as ‘Binance-Cold 2’, to another wallet labeled ‘Binance 3’. It’s worth noting that this transfer took place days before the official announcement of the guilty plea and the agreement with US federal authorities, totaling over $4.3 billion.

On-chain data from TronScan provides details on this significant transaction, revealing that ‘Binance 3’ currently holds $3.6 billion, mainly in Tether (USDT). On the other hand, ‘Binance-Cold 2’, created in November 2018, still retains $6.6 billion in assets with a transaction history of 2498.

It is important to note that the exchange clarified in previous statements that its cold wallets, designed to store the majority of the company’s funds and receive excess funds, are crucial components of its financial infrastructure.

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Binance Pays its Fines and Restructures

In response to the legal developments and the agreement, CZ resigned from his CEO position, and the company agreed to pay a criminal fine of $1.8 billion. Additionally, $2.5 billion will be forfeited, with $1.6 billion allocated to settle agreements with the Commodity Futures Trading Commission (CFTC), the Financial Crimes Enforcement Network (FinCEN), and the Treasury’s Office of Foreign Assets Control (OFAC).

In total, the fine imposed on Binance amounts to $4.3 billion, making it the most expensive penalty ever imposed on a crypto company. This underscores that the regulatory front is far from becoming less hostile.

The transaction itself raises questions about the timing of the fund movement in relation to the announcement of the agreement, highlighting the financial implications and ongoing restructuring within Binance.

It is noteworthy that the company already has a new leadership team. Richard Teng, who has been with the exchange since 2021, assumed the role of Changpeng. Teng is a prominent expert in finance and regulations, making his appointment a positive sign for the company’s future.

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