Binance reserves lost $2.3B following BUSD debacle

Investors withdrew astir $2.3 cardinal worthy of Binance USD (BUSD) from Binance wrong 4 days aft the Securities and Exchange Commission (SEC) issued a informing to BUSD issuer Paxos.

The SEC requested Paxos to halt further BUSD accumulation connected Feb. 13. At the time, Binance held a small implicit 14.4 cardinal BUSD tokens successful its reserves. After the SEC intervention, the exchange’s BUSD excavation rapidly started to shrink.

Binance reserves (Source: Glassnode)

Between Feb. 13 and Feb. 17, Binance’s BUSD holdings recorded a 16% alteration and fell to astir 12.1 cardinal tokens.

The SEC vs. BUSD

After the SEC issued a Wells announcement to Paxos connected Feb. 13, Binance CEO Changpeng Zhao (CZ) responded to the SEC by saying that “Paxos volition proceed to work the merchandise and negociate redemptions.”

However, connected the aforesaid day, Paxos announced that it would halt further BUSD minting starting from Feb. 21, 2023. In the meantime, the BNB token responded to this quality by losing implicit 9% of its value.

The station Binance reserves mislaid $2.3B pursuing BUSD debacle appeared archetypal connected CryptoSlate.