{"id":551616,"date":"2023-02-14T08:22:39","date_gmt":"2023-02-14T05:22:39","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/binance-withdrawals-and-busd-redemptions-surge-post-paxos-crackdown\/"},"modified":"2023-02-14T08:22:39","modified_gmt":"2023-02-14T05:22:39","slug":"binance-withdrawals-and-busd-redemptions-surge-post-paxos-crackdown","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/binance-withdrawals-and-busd-redemptions-surge-post-paxos-crackdown\/","title":{"rendered":"# Binance withdrawals and BUSD redemptions surge post Paxos crackdown"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36dc56f286b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36dc56f286b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/binance-withdrawals-and-busd-redemptions-surge-post-paxos-crackdown\/#%E2%80%9D_Binance_withdrawals_and_BUSD_redemptions_surge_post_Paxos_crackdown_%E2%80%9C\" >&#8221; Binance withdrawals and BUSD redemptions surge post Paxos crackdown &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Binance_withdrawals_and_BUSD_redemptions_surge_post_Paxos_crackdown_%E2%80%9C\"><\/span>&#8221; Binance withdrawals and BUSD redemptions surge post Paxos crackdown &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDIvMDJiYjcyNjQtODZhZS00NWI5LWFhNGUtOWRkYTZkZDY0Y2JjLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4bbf85c5>Cryptocurrency exchange Binance has seen a surge of withdrawals over the last 24 hours as investors <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear to be spooked over recent <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> of regulatory action against Paxos and its stablecoin Binance USD (BUSD). <\/p>\n<p>At the same time, the BUSD token has recorded significant redemptions, with 342 million BUSD burned over the last 24 hours according to Peckshield.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/PeckShieldAlert?src=hash&amp;ref_src=twsrc%5Etfw\">#PeckShieldAlert<\/a> ~342M <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24BUSD&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BUSD<\/a> have been burned at Paxos Treasury within the last 24 hours, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24BUSD&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BUSD<\/a> MarketCap: $15.8B<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/BMeVokqVE6\">https:\/\/t.co\/BMeVokqVE6<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/hJdnixxbtD\">pic.twitter.com\/hJdnixxbtD<\/a><\/p>\n<p>\u2014 PeckShieldAlert (@PeckShieldAlert) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PeckShieldAlert\/status\/1625323322459443201?ref_src=twsrc%5Etfw\">February 14, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>On Feb. 12, news broke that the United States Securities and Exchange Commission gave notice of potential enforcement action against Paxos. It alleged the stablecoin is an unregistered security, an assertion that Paxos denies.<\/p>\n<p>Data compiled from the blockchain intelligence platform Nansen <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/pro.nansen.ai\/exchange-flows\">show<\/a>\u00a0that Binance recorded 24-hour multichain token net outflows of $788.5 million, caused by outflows of $2.7 billion exceeding inflows of around $1.97 billion.<\/p>\n<p>According to Dune analytics <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/dune.com\/queries\/1582039\/2633662\">data<\/a>, it\u2019s the largest 24-hour net outflow since Dec. 17, when Binance\u2019s \u200b\u200bproof-of-reserve audits were removed from auditor Mazars\u2019 website.<\/p>\n<p>A spokesperson for Binance told Cointelegraph that \u201cfunds are SAFU\u201d \u2014 backed by a Secure Asset Fund for Users \u2014 echoing what Binance chief Changpeng \u201cCZ\u201d Zhao said earlier on Feb. 13.<\/p>\n<p>The spokesperson added that the exchange recently had a sell-off with \u201cmore than $1 billion\u201d withdrawn in a 12-hour period, which it claims \u201cwas managed with ease.\u201d<\/p>\n<p>\u201cWe run a very simple business model \u2014 hold assets in custody and generate revenue from transaction fees,\u201d Binance said, adding:<\/p>\n<blockquote><p>\u201cWe take our responsibility as a custodian seriously and maintain 1:1 backing for every user asset.\u201d<\/p><\/blockquote>\n<p>Following the SEC\u2019s action and a reported tip-off from USD Coin (USDC) issuer Circle, the New York Department of Financial Services (NYDFS) ordered Paxos to halt the issuance of BUSD on Feb. 13.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Are stablecoins securities? Well, it\u2019s not so simple, say lawyers<\/em><\/strong><\/p>\n<p>The outflows and token burns seemingly are a response to those events, with crypto users cashing out of the stablecoin over fears of further regulatory action.<\/p>\n<p>Binance\u2019s reserves harbor the largest amount of BUSD, holding $14.4 billion worth of the stablecoin, or around 90% of the $16.1 billion current market cap.<\/p>\n<p>The crypto exchange also has around $60 billion worth of reserves, with 22% of that made up of BUSD.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/binance-withdrawals-and-busd-redemptions-surge-post-paxos-crackdown\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Binance withdrawals and BUSD redemptions surge post Paxos crackdown &#8220; Cryptocurrency exchange Binance has seen a surge of withdrawals over the last 24 hours as investors appear to be spooked over recent news of regulatory action against Paxos and its stablecoin Binance USD (BUSD). At the same time, the BUSD token has recorded significant&#8230;<\/p>\n","protected":false},"author":1,"featured_media":551617,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/02bb7264-86ae-45b9-aa4e-9dda6dd64cbc.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75014,138848,74894,76605,75493,117],"class_list":["post-551616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-binance","tag-binance-usd","tag-blockchain","tag-paxos","tag-stablecoin","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/551616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=551616"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/551616\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/551617"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=551616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=551616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=551616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}