Binance receives a transfer of 1.8 trillion Shiba Inu from crypto.com

Crypto.com recently sent over 1.8 trillion Shiba Inu from one of its official wallets to a Binance wallet.

1.8 trillion SHIB moved to Binance wallet

Singapore-based cryptocurrency exchange Crypto.com just transferred over 1.8 trillion SHIB from one of its wallets to an official Binance wallet. The transfer occurred in a batch of two 900B SHIB transactions five minutes apart, triggering questions on the actual purpose of the outflow.

Cryptocurrency on-chain data tracking system Whale Alert highlighted the two transactions which occurred on Tuesday. The first transaction involved the transfer of 900 billion SHIB valued at $8.2M+ from a Crypto.com wallet with the tag Crypto.com 5 to a wallet affiliated with Binance. Barely five minutes later, a similar transaction was indexed by Whale Alert. The second transaction, which involved the transfer of another batch of 900 billion SHIB tokens ($8.2M+), appears to have been made from the same Crypto.com 5 wallet to the earlier-mentioned Binance wallet. 

The Binance address implicated now has ERC-20 tokens valued at $48.2M+ after this string of transactions, including the 1.8 trillion SHIB valued at $16.4M+. In addition to the recent SHIB transactions, the Binance wallet has recently transacted with wallets from several exchanges, such as Crypto.com 5, Crypto.com 3, an OKX wallet, and a Kraken and a Bittrex wallet.

Foul play suspected as massive transfers occur

In the past, the wallets from these exchanges have transferred millions worth of ERC-20 tokens to this central Binance address, with Crypto.com 5 and Crypto.com 3 involved in most transactions. Both addresses have transferred $38.2M+ of assets to the Binance wallet in the past 4 hours. The central Binance wallet has always transferred its funds to the address tagged Binance 14 each time it received these tokens.

Unsurprisingly, the mysterious transfer of money between these wallets on Crypto.com and the Binance wallet has drawn criticism from the wider cryptocurrency community. Many wonders if foul play is involved with the recent wave of proof of reserve disclosures in the crypto space.

Recall how, in response to investor worries about a repeat of the FTX collapse, both Binance and Crypto.com recently published their respective proofs of reserves. Notably, the proof of reserves for both exchanges showed sizable SHIB token holdings. Despite limited knowledge surrounding the recent transfers from Crypto.com to Binance, numerous proponents have expressed their concerns as claims have been made in the past, suggesting an alleged scheme to fake proof of reserves by Crypto.com and Gate.io. Crypto.com “mistakenly” transferred 320K ETH (~$416M) to a whitelisted Gate.io wallet on October 21. Gate.io transferred 285K ETH back within a week.