Buyers withdrew round $2.3 billion value of Binance USD (BUSD) from Binance inside 4 days after the Securities and Change Fee (SEC) issued a warning to BUSD issuer Paxos.
The SEC requested Paxos to cease additional BUSD manufacturing on Feb. 13. On the time, Binance held a bit over 14.4 billion BUSD tokens in its reserves. After the SEC intervention, the trade’s BUSD pool quickly began to shrink.
Between Feb. 13 and Feb. 17, Binance’s BUSD holdings recorded a 16% lower and fell to round 12.1 billion tokens.
The SEC vs. BUSD
After the SEC issued a Wells discover to Paxos on Feb. 13, Binance CEO Changpeng Zhao (CZ) responded to the SEC by saying that “Paxos will proceed to service the product and handle redemptions.”
Nevertheless, on the identical day, Paxos introduced that it will cease additional BUSD minting ranging from Feb. 21, 2023. Within the meantime, the BNB token responded to this information by shedding over 9% of its worth.
