Arkham Intelligence recently discovered that Robinhood allegedly has the fifth-largest Ethereum wallet globally.
This news comes shortly after Arkham pinpointed Robinhood as the owner of the world’s third-largest Bitcoin wallet.
Robinhood’s Ethereum Holdings Revealed
Arkham Intelligence released findings that Robinhood holds approximately 1.493 million Ethereum, worth roughly $2.54 billion. Additionally, in a recent post on X (formerly Twitter), the blockchain investigation firm declared this is the fifth-largest holdings of Ethereum in the world.
Upon the disclosure of the findings, a user raised the question of the funds’ actual owner.
“Is this their funds or user,” the user asked.
Arkham alludes to the SEC’s increasingly rigorous cryptocurrency regulations in recent times.
“Funds they hold in custody for user balances. SEC requires that crypto balances on RH are backed 1:1.”
Proof-of-Reserves and Latest Bitcoin Discovery
Over the past year, there has been a lot of talk about proof of reserves in the crypto industry. The SEC recently warned investors to be careful when looking at proof of reserve audit reports from crypto exchanges because they might not show the whole picture.
Binance, however, states that it is getting harder for crypto exchanges to secure auditors to do proof-of-reserve audits with all the regulatory scrutiny in the industry. Binance declared that even Big Four accounting firms are “unwilling” to carry out proof-of-reserve audits.
This comes after Robinhood’s recent news introducing a new feature, Ethereum swaps. Users can now easily exchange Ethereum-based tokens without having to actually hold ETH. The network fees for these swaps are taken from the users’ existing tokens.
Only a day ago, Arkham also revealed that Robinhood is the third-largest holder of Bitcoin. A wallet screenshot disclosed by Arkham displayed 122,567 Bitcoin, equating to around $3.43 billion.
At the time of publication, with Bitcoin’s price currently $27,250, this amount is worth $3.34 billion.
Top crypto platforms in the US | December 2023
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.