Investors withdrew around $2.3 billion worth of Binance USD (BUSD) чейин Binance within four days after the Securities and Exchange Commission (SEC) issued a warning to BUSD issuer Paxos.
SEC суралган Paxos to stop further BUSD production on Feb. 13. At the time, Binance held a little over 14.4 billion BUSD tokens in its reserves. After the SEC intervention, the exchange’s BUSD pool rapidly started to shrink.
Between Feb. 13 and Feb. 17, Binance’s BUSD holdings recorded a 16% decrease and fell to around 12.1 billion tokens.
The SEC vs. BUSD
After the SEC issued a Wells notice to Paxos on Feb. 13, Binance CEO Changpeng Zhao (CZ) жооп to the SEC by saying that “Paxos will continue to service the product and manage redemptions.”
However, on the same day, Paxos жарыялады that it would stop further BUSD minting starting from Feb. 21, 2023. In the meantime, the BNB token жооп to this news by losing over 9% of its value.
Source: https://cryptoslate.com/binance-reserves-lost-2-3b-following-busd-debacle/