Nearly 3 billion USD was withdrawn from Binance after the Paxos incident

The largest crypto exchange on the planet Binance has suffered a massive withdrawal from users.

According to data from blockchain data company Nansen, in the last 24 hours alone, users withdrew about $2.8 billion in digital assets from Binance, while the amount poured in during the same period was nearly $2 billion.

Thus, Binance has a net withdrawal of about 830 million USD in the past 24 hours. This is also the largest net withdrawal since November 2022.

Now, panic continues to prevail over investors after the crackdown on stablecoin Binance USD (BUSD) issued by Binance in partnership with Paxos since 2019.

Specifically, the New York Department of Financial Services ordered Paxos to stop printing new BUSD, after the US Securities and Exchange Commission (SEC) sent a notice preparing to prosecute the stablecoin as a "disguised security".

Born under the name Binance, BUSD is currently the 3rd largest stablecoin by market capitalization and accounts for 35% of the total trading volume on the world's largest crypto exchange.

The regulatory action is severely damaging the exchange as BUSD is the largest asset in Binance's reserves (at around $13.4 billion) after Tether's USDT, Nansen reflected. This holding represents 22% of the $60 billion in assets on Binance.

BUSD is currently the third largest stablecoin in the world and accounts for 35% of Binance's trading volume.

And despite being named after Binance, BUSD was not created by this cryptocurrency exchange, but has a close relationship.

Binance CEO Changpeng Zhao (CZ) also confirmed the stablecoin is “fully owned and managed” by Paxos.

Post a Comment

Join our Team