Once U.S. officials turned their attention to the cryptocurrency, approximately $2.5 billion was claimed to have flowed out of Binance’s stablecoin this week, as stated by the CEO of Binance on Twitter. The majority of the funds have been transferred from Binance USD (BUSD) into Tether (USDT), another stablecoin where each token has a value of $1, as stated by the CEO of Binance, Changpeng Zhao, on Twitter. “Landscape is shifting,” he explained in his tweet.
The usage of stablecoins facilitates trading not just between cryptocurrencies but also between cryptocurrencies and traditional assets. BUSD ranks third among stablecoins, after USDT and USD Coin (USDC). According to the analytics website CoinMarketCap, this week saw a rise of around $2 billion in USDT’s market capitalization, which is a measurement of the total amount of money invested in the coin.
Paxos Trust Company, the company that is behind BUSD, has been ordered to halt minting the tokens, according to a statement released on Monday by the New York Department of Financial Services. Paxos stated that it was also informed by the United States Securities and Exchange Commission (SEC) that the company, which has its headquarters in New York, should have registered the stablecoin offering as a security.
The price of BUSD, the exchange’s native token, dropped in response to the announcement but has since recovered and was last seen unchanged at $306.96. On Thursday, it was claimed that Binance, a renowned cryptocurrency exchange, had covert access to a bank account belonging to its ostensibly independent U.S. partner and moved $400 million to a trading firm managed by Zhao.
