Binance Withdrawals Surge Following Paxus BUSD Scrutiny
Binance Withdrawals Surge Following Paxus BUSD Scrutiny.
Surge Of Withdrawals
Cryptocurrency exchange Binance is reportedly seeing a massive surge of withdrawals within the last 24 hours following the recent events involving the Securities and Exchange Commission (SEC) and their regulatory enforcement and lawsuit against Paxos, the issuer of its stablecoin Binance USD (BUSD).
According to data from DuneAnalytics, Binance recorded up to $916 million in outflows in Ethereum-based (ETH) tokens on Feb. 13 — the exchange’s highest daily withdrawal since Nov. 24, 2022, around the same time that FTX began to collapse.
Related: Kraken To Shut Down Crypto Staking Following $30M Fine By SEC
7/ Binance will continue to support BUSD for the foreseeable future. We do foresee users migrating to other stablecoins over time. And we will make product adjustments accordingly. eg, move away from using BUSD as the main pair for trading, etc.
— CZ 🔶 Binance (@cz_binance) February 13, 2023
Since then however, Binance CEO Changpeng Zhao (CZ) has come out to reassure worries of the massive amount of withdrawals on their exchange, along with the halting of BUSD’s minting.
CZ assures investors through a tweet that despite their name, Binance USD is a stablecoin that is “wholly owned and managed by Paxos” and not Binance.
BUSD Burned
Binance USD (BUSD), on the other hand, the stablecoin in the centre of all this scrutiny has been seeing massive activity within the past few days.
After the New York Department of Financial Services ordered Paxos to stop other mints of the stablecoin on Feb. 13, the BUSD issuer was burned up to $342 million worth in just 24 hours.
Related: Coinbase CEO Talks Rumours Of SEC Wanting To Ban Crypto Staking!
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