Binance Bitcoin Reserves Drop Amid User Balance Surge
In January, Binance, the world's largest cryptocurrency exchange by trading volume, experienced a significant shift in its financial reserves. According to a report by CoinDesk, Binance's Bitcoin (BTC) reserves decreased by $355 million, while user balances surged by $4.4 billion. This change brought the exchange's collateralization ratio down from 108% to 100%, aligning reserves more closely with user balances. At the start of the year, Binance held 622,192 BTC, but by February 1, this figure had dropped to 618,563 BTC. Meanwhile, customer net balances increased from 575,296 BTC to 615,816 BTC.
Additionally, Tether's USDT reserves on Binance fell by $25 million, even as user balances rose by $2.6 billion. Despite these shifts, Binance remains in a strong financial position, holding $160 billion worth of 34 crypto assets, all maintained at a 1:1 or greater ratio against user balances. The exchange's actions come in the wake of the FTX collapse in November 2022, which prompted many exchanges to publish proof of reserves to reassure users. Binance has not commented on the reasons behind the reserve adjustments, though speculation suggests potential fund reallocation for investment purposes. For more details, visit CoinDesk's report.
The Untold Ordeal of a Binance Investigator in Nigeria
In a gripping account by WIRED, Tigran Gambaryan, a former IRS special agent and head of investigations at Binance, faced a harrowing experience in Nigeria. Gambaryan, known for his groundbreaking work in crypto crime investigations, was detained in Abuja alongside his colleague Nadeem Anjarwalla. The two were held in a government compound under military guard, accused of tax evasion and money laundering. Their detention followed a series of tense meetings with Nigerian officials, who demanded extensive user data from Binance and alleged the company had harmed Nigeria's economy.
Gambaryan's ordeal escalated when Anjarwalla managed to escape, leaving him alone to face worsening conditions. He was later transferred to Kuje Prison, where he endured severe health issues, including malaria and a herniated disc, with limited medical care. Despite his deteriorating health, Gambaryan's case gained international attention, with US lawmakers and Binance advocating for his release. His story highlights the complex intersection of cryptocurrency, international law, and geopolitical tensions. For the full narrative, refer to WIRED's detailed report.
Sources:
- Binance Corporate Reserves Shrink Despite $7B Rise in User Balances
- Crypto Exchange Giants Face January Blues as Trading Volumes Crash
- The Untold Story of a Crypto Crimefighter’s Descent Into Nigerian Prison
- Reviewed and Compared – The 7 Best No-KYC Crypto Exchange Platforms in 2025
- Post-election trading surge bullish for Coinbase earnings: Kaiko
- Binance-Backed Memecoin Rips 1,267% After Crypto Exchange Announces Trading Support
