Over the last 24 hours, Binance withdrawals and BUSD redemptions surged
Binance, a cryptocurrency exchange, has seen a spike in withdrawals over the past 24 hours as a result of reports that Paxos and its stablecoin Binance USD ($BUSD) may be subject to regulatory action.
News of prospective enforcement action against Paxos by the US Securities and Exchange Commission surfaced on February 12. Paxos disputes the claim that the stablecoin is an unregistered security.
The $BUSD has also experienced massive redemptions; according to Peckshield, 342 million $BUSD were burnt on the previous day. Binance witnessed 24-hour multichain token net outflows of $788.5 million, as evidenced by data collated by the blockchain intelligence platform Nansen, as a result of outflows of $2.7 billion exceeding inflows of roughly $1.97 billion. Dune analytics data indicates that it is the highest 24-hour net outflow since Binance’s proof-of-reserve audits were taken down from auditor Mazars’ website on December 17.
The exchange recently had a sell-off, in which “more than $1 billion” was withdrawn in a 12-hour period, according to the exchange’s spokeswoman, which it claims, “was managed with ease.” The cryptocurrency exchange also has reserves of about $60 billion, 22% of which are $BUSD.
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