$4 Billion DOJ Deal Sparks Speculation Over Binance’s $3.9 Billion USDT Transfer

Vignesh Karunanidhi
$4 Billion DOJ Deal Sparks Speculation Over Binance's $3.9 Billion USDT Transfer
Source: Pymnts.com

Reports that Binance may pay $4 billion to settle a U.S. investigation have fueled speculation around a recent $3.9 billion USDT transfer conducted by the crypto exchange. The massive stablecoin movement between Binance wallets occurred just weeks before news broke of negotiations with the Department of Justice.

On November 20th, Bloomberg reported that Binance is in advanced talks to pay $4 billion in settlement. The settlement was announced today.

Also read: SEC Sues Kraken Crypto exchange

Binance’s 3.9 billion USDT move raises speculation

Shortly afterward, the crypto community noted that Binance had transferred almost the exact amount in USDT between its wallets earlier in November. Per on-chain data, the exchange moved 3.9 billion USDT from its “Binance-Cold 2” address to its “Binance 3” wallet on November 9th.

The transaction, the 8th largest ever on the Tron blockchain, immediately sparked questions on crypto Twitter. Users asked where the funds originated and if they were being accumulated to cover impending DOJ penalties.

Also Read: Changpeng Zhao Resigns as Binance CEO

Some posters attempted to link the puzzle pieces between the massive USDT movement and Binance’s efforts to negotiate U.S. fines. They speculated that the exchange may have prepared funds in advance to demonstrate liquidity for paying substantial settlements.

However, establishing concrete connections between independent data points often proves difficult. The timing overlap between the $3.9 billion transfer and the reported $4 billion DOJ deal may be coincidental.