Key Points: Since complying with the cease and desist order for Binance stablecoins (BUSD), Paxos Treasury accounted for over 400 million BUSD.
On February 13, the NYDFS asked Paxos not to issue new stablecoin BUSD, and to end its relationship with Binance.
Paxos Treasury reported that 419 million BUSD were destroyed in the last two days. Yesterday, Paxos Treasury reported that it had destroyed approximately 419 million BUSD in the past two days. The stablecoin company claims that its product will always remain 1:1 and backed by US dollars. It will also continue processing customer withdrawal requests until February 2024. Since February 13, the destruction has occurred twice. Yesterday, Paxos Treasury smashed 342 million dollars in BUSD. Today, recorded another 76,152,978 BUSD on the destroyed Ethereum chain.Source: PeckShieldAlertSource: Whale ArlertAccording to sources from Bloomberg, Paxos competitor Circle reported to the New York watchdog last year about Paxos’ mismanagement of BUSD reserves.Circle filed a complaint with the New York Department of Financial Services (NYDFS), which regulates both stablecoin issuers within New York state limits, claiming they had obtained evidence on the blockchain that Binance did not maintain sufficient collateral for the issued amount of BUSD.Many speculate that Circle’s foul play stems from Binance introducing a discriminatory policy for BUSD in 2022 when converting the balances of all stablecoins deposited by users listed on the exchange trades into BUSD, excluding Tether (USDT). This has caused USDC to lose market share. Binance stated that even if Paxos is delisted or the market share for BUSD decreases soon, they will continue to support BUSD through their platform. Binance stated that to “ensure our customers are insulated from any excess harm”, evaluations of other initiatives would be necessary due to continuing regulatory uncertainty in certain regions. We encourage you to do your research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comFoxyCoincu NewsTags: # Cryptocurrencies#MarketsBinanceBlockchainCirclecryptoPaxos