Binance Clarifies Asset Movements: No Sales, Funds Safe

Binance, the world's largest cryptocurrency exchange, has clarified recent asset movements, stating that no assets were sold and user funds remain safe. The exchange attributed the changes to adjustments in its financial department's accounting processes.

In its latest quarterly burn report, Binance revealed that the reserve ratios of multiple assets had decreased. The Bitcoin reserve ratio fell from 108.15% in January to 100.45% in February, while the Ethereum reserve ratio decreased from 104.2% to 100%. The BNB reserve ratio also dropped from 115.75% to 112.73%. Notably, the USDC reserve ratio increased significantly, rising from 132.32% to 141.28%.

Estimates suggest that Binance's proprietary assets decreased by approximately $5.489 billion compared to January. However, the exchange has reassured users that their funds remain secure in the SAFU (Secure Asset Fund for Users) system.

The clarification comes amid ongoing scrutiny of cryptocurrency exchanges and their financial practices. As the industry continues to evolve, transparency and accountability remain crucial for maintaining user trust.