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After transferring nine million to Binance US, withdrawals were restored. Netizens ask: Why did the money come from Binance?

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After transferring nine million to Binance US, withdrawals were restored. Netizens ask: Why did the money come from Binance?

Binance US temporarily suspended withdrawals of USDT on the Ethereum network for about four hours yesterday (17), but resumed withdrawals after receiving a $9 million influx from Binance.

Debate: Why is Money Flowing from Binance International to Binance US?

Adam Cochran, a partner at Cinneamhain Ventures, questions why USDT is flowing from Binance International to Binance US. In theory, these two should be separate entities, and their assets should be segregated.

However, Adam Cochran's question has its flaws, as although the money is flowing from Binance International to Binance US, it may not necessarily be an action by Binance itself, but could be from market makers or institutional investors.

Meanwhile, Connor.G, a data analyst at Coinbase, stated:

We are not sure if these funds are transferred from Binance International to Binance US by Binance itself, but this fund involves over 200 transactions, and the money only flows from Binance International to Binance US, without funds coming from other sources.

Adam Cochran believes that it is more likely an action by Binance itself, as market makers would not choose to deposit funds when the wallet is empty, and coincidentally, withdrawals resumed after the funds were deposited.

Another Twitter influencer, Artem Oak, mentioned that this pattern started over three months ago.

Firstly: Binance deposit wallets first transfer funds to Binance US deposit wallets.
Then: Binance US deposit wallets transfer funds to other wallets within Binance US.
Hence, most of Binance's deposit wallets are almost empty (Note: referring to wallets with balances less than 3,000 USDT).

These are all speculations based on analysis. As Connor.G mentioned, we still have very limited understanding from on-chain data.

These data do not prove that it is an action by Binance. It could be due to Binance prioritizing security and storing most of the funds in unmarked wallets. Alternatively, they may have enough USDT on other chains, just not on Ethereum.