Binance's Ethereum Wallet Activity Surge

Martin Walker
Sep 23, 2023 at 11:57 am

Binance has witnessed a surge of activity in one of its Ethereum hot wallets over the past few weeks. The situation escalated dramatically on September 21st due to a significant uptick in on-chain operations within the Binance 14 wallet.

During a 24-hour period, the hot wallet in question expended a remarkable 530 Ether on gas fees, amounting to approximately $840,000.

Elevated Gas Costs

Data obtained from Dune Analytics' dashboard indicated that the address handled a staggering 146,582 transactions during this time frame. Consequently, gas fees on the Ethereum network skyrocketed by 5,433%, jumping from a low of 6 gwei to a peak of 332 gwei per transaction, as reported by Etherscan.

These recent statistics even surpassed the previous record set just a week prior, when Binance 14 spent 388 Ether on gas fees on September 13th. However, the transaction count during that period was significantly higher than the current figures. In fact, the wallet had achieved the second-highest daily transaction record of 710,638, following its all-time high of 959,000 on December 9, 2022.

These spikes were notably unusual, given that the gas fees for this hot wallet had typically remained below 3 Ether.

Binance has not issued an official statement yet. However, there is an update suggesting that the crypto exchange was involved in a wallet aggregation process during the period of low gas fees to ensure the safety of user funds.

Addressing Concerns and Speculation

The recent surge in activity has ignited discussions about Binance's capabilities, particularly as the crypto exchange remains embroiled in a fierce legal battle with U.S. authorities.

The CEO, CZ, recently refuted a report claiming that he received a $250 million loan from BAM Management, the company acting as the holding entity for Binance.US. He clarified that the loan was, in fact, the opposite—where he lent the funds to BAM.

Earlier this week, Binance disclosed its engagement with representatives of law enforcement agencies to explore collaboration opportunities aimed at enhancing crime prevention and investigative capabilities worldwide. Additionally, the crypto exchange received an invitation from the Hong Kong Police to participate in the International Symposium on Cyber Policing 2023.

Read more about: Crypto Legal Battle: FTX Pursues Millions

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