Binance has dismissed speculation that it is offloading its assets, attributing recent balance sheet adjustments to internal treasury management rather than liquidations.

On Feb. 11, the exchange clarified to CryptoSlate that it had not engaged in asset sales. Instead, the on-chain adjustments were part of an internal accounting process.

The firm’s spokesperson said:

“Binance is not selling assets. This was simply an adjustment in the Binance treasury’s accounting process. User funds are SAFU, as always.”

Rumors of Binance selling its assets surfaced on social media platform X after its Bitcoin and Ethereum holdings sharply declined over 90% in January.

Crypto analyst AB Kuang.Dong explained that the affected assets originated from Binance’s past revenue rather than user funds. He noted that a significant portion of these holdings had been converted into USDC, with Binance Coin (BNB) seeing the smallest reduction at 16.6%.

CryptoSlate’s review of Binance’s proof of reserves highlights these shifts. On Jan. 1, the exchange reported a substantial surplus of assets beyond the 100% customer guarantee, with most major cryptocurrencies reporting double-digit percentage collateral.

However, by Feb. 1, 2025, this excess collateral had shrunk considerably, with some assets collateral reduced to as little as 0.01%, while only BNB retained up to 12.37% in surplus.

While other crypto reserves declined, Binance’s USDC holdings dramatically rose during the same period. The exchange’s reserve data shows that the USDC balance grew by over $1 billion, pushing its collateralization rate above 40%.

The post Binance denies asset sell-off rumors, attributes changes to internal treasury management appeared first on CryptoSlate.