How Binance became the latest ‘talk of the town’ thanks to this tittle tattle

ambcrypto.com:

Cryptocurrency exchange Binance reportedly experienced a large exodus of BUSD on 3 April, 2023. This outflow was linked to FUD after the content of a Sha256 hash prediction by Twitter user @Cobie was published.

According to Arkham Intelligence, multiple Paxos addresses received large amounts of BUSD from the Binance exchange right after the Cobie hash was decoded. The BUSD exodus reflects a response to the FUD related to the hash prediction, and especially regarding Binance.

BUSD saw heavy outflows from Binance last night, after the solution to Cobie's hash was posted on Twitter.

Most BUSD redemptions to Paxos were made through two deposits:

– 0x4F4 with heavy interaction with a number of on-chain addresses – 0x72b only receiving from Binance. pic.twitter.com/PTsp94OIsb

— Arkham (@ArkhamIntel) April 4, 2023

Understanding SHA256 hash predictions may provide clearer insights as to what happened. They represent coded messages that a party encodes onto a block as proof of knowledge at a specific time without necessarily spoofing the market.

The coded information can then be revealed at a later date, thus the proof of knowledge aspect.

An analysis of the situation by pseudonymous analyst @FatManTerra revealed that the code was cracked. The hidden message was about an Interpol red notice for Binance CEO CZ. This explains why the market reacted by aggressively pulling liquidity from the exchange.