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Paxos-BUSD Dispute Triggers Large-Scale Withdrawals from Binance

Published 02/14/2023, 12:30 PM
Paxos-BUSD Dispute Triggers Large-Scale Withdrawals from Binance

  • CryptoQuant has reported an upward trend in the amount of BUSD deposited on centralized exchanges.
  • Over 341 million BUSD coins have been burned at the Paxos treasury.
  • Andrew Thurman has noted a "huge uptick" in deposits to various Paxos deposit addresses.

Binance USD (BUSD) is the latest player to feel the heat of regulatory scrutiny, as the Securities and Exchange Commission (SEC) took aim at the stablecoin's issuer, Paxos. They say that stability meets uncertainty and regulation is always around the corner.

The crypto industry is closely monitoring a recent development in the stablecoin space as the SEC has taken legal action against the issuer of BUSD. The regulator has flagged plans to sue the issuer, Paxos, for allegedly violating securities laws. As a result of the SEC's move, Paxos announced that it would halt the minting of BUSD.

BUSD Supply Shrinks

Andrew Thurman, a researcher from Nansen, said on Monday that various Paxos deposit addresses saw a “huge uptick in deposits, meaning there's more redemptions and burns to come.”

Thurman stated that a significant amount of BUSD burned on Monday, at a volume of more than $275 million. According to Thurman, this figure could rise into the billions by the end of the week.

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BUSD Inflow on CEXes Rises as Paxos Disagrees with the SEC

CryptoQuant, a provider of blockchain data and analytics, has reported a significant decline in Bitcoin (BTC) holdings on Binance. On-chain data revealed the transfer of approximately 3,500 BTC away from Binance following the Securities and Exchange Commission (SEC) issuing a Wells notice.

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