Binance sees $900 million in crypto withdrawals in one day when Paxos stops minting BUSD

After the announcement that crypto company Paxos, the issuer of Binance’s dollar-pegged stablecoin was ordered by authorities to suspend the minting of BUSD, approximately $1 billion in digital assets left the crypto trading platform Binance in one day.

As noted by popular cryptocurrency researcher Ali Martinez in a tweet posted on February 14, on-chain data from crypto monitoring platform Dune Analytics indicates that $916 million worth of digital assets were removed from the crypto exchange on February 13.

In addition, traders have moved their stablecoins and fled BUSD, as the number of addresses holding between one million and ten million BUSD has been fast falling, dumping $208 million worth of the currency, according to recent data from the on-chain and social analytics platform Santiment.

Coincidentally, the massive outflow from Binance coincided with the latest blow to the cryptocurrency exchange in the shape of a multi-agency crackdown on it, including the New York Department of Financial Services (NYDFS) order for Paxos to suspend BUSD issuing.

The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Paxos, claiming that the business improperly sold BUSD, which the SEC deems a security. According to the CEO of Binance, Changpeng Zhao, a court ruling in favour of the SEC would have “deep effects on how the cryptocurrency business develops (or does not grow)” in impacted countries.

Earlier, Kraken, a cryptocurrency exchange, was compelled to pay a $30 million settlement to the SEC on charges that it had broken rules, adding to the general feeling of “FUD” that has caused many investors to flee the market and sent the total value of all cryptocurrencies momentarily below the psychological threshold of $1 trillion.

Also Read: Big Investors Confirm The End Of The Bear Market And The Beginning Of A New Bull Run

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.