2 years ago
Net outflows astatine the cryptocurrency speech deed $788 cardinal implicit the past 24 hours, however, Binance told Cointelegraph that "Funds are SAFU."
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Cryptocurrency speech Binance has seen a surge of withdrawals implicit the past 24 hours arsenic investors look to beryllium spooked implicit caller quality of regulatory enactment against Paxos and its stablecoin Binance USD (BUSD).
At the aforesaid time, the BUSD token has recorded important redemptions, with 342 cardinal BUSD burned implicit the past 24 hours according to Peckshield.
#PeckShieldAlert ~342M $BUSD person been burned astatine Paxos Treasury wrong the past 24 hours, $BUSD MarketCap: $15.8Bhttps://t.co/BMeVokqVE6 pic.twitter.com/hJdnixxbtD
— PeckShieldAlert (@PeckShieldAlert) February 14, 2023On Feb. 12, quality broke that the Securities and Exchange Commission (SEC) gave notice of imaginable enforcement action against Paxos. It alleged the stablecoin is an unregistered security, an assertion that Paxos denies.
Data compiled from the blockchain quality level Nansen show crypto speech Binance recorded 24-hour multichain token nett outflows of $788.5 million, caused by outflows of $2.7 cardinal exceeding inflows of astir $1.97 billion.
According to Dune analytics data, it’s the largest 24-hour nett outflow since Dec. 17, 2022, erstwhile its proof-of-reserve audits were removed from auditor Mazars’ website.
Related: Are stablecoins securities? Well, it’s not truthful simple, accidental lawyers
Following the SEC's enactment and a reported tip-off from USDC issuer Circle the New York Department of Financial Services (NYDFS) ordered Paxos to halt the issuance of BUSD connected Feb. 13.
The outflows and token burns are a seeming effect to the events, with crypto users seemingly cashing retired of the stablecoin implicit fears of further regulatory action.
Binance’s reserves harbor the largest magnitude of BUSD, holding $14.4 cardinal worthy of the stablecoin, oregon astir 90% of the $16.1 cardinal existent marketplace cap.
The crypto speech besides has astir $60 cardinal worthy of reserves, with 22% of that made up of BUSD.
Binance told Cointelegraph that “funds are SAFU” — backed by a Secure Asset Fund for Users — echoing what Binance main Changpeng “CZ” Zhao said earlier connected Feb. 13.
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