$1 Billion Outflows Recorded on Binance in Wake of BUSD News: Details

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Tomiwabold Olajide

Binance records $1 billion in outflows as withdrawals surge in wake of BUSD news

According to Dune Analytics data shared by crypto analyst Ali Martinez, top crypto exchange Binance saw nearly $1 billion in crypto withdrawals within 22 hours after Paxos was instructed to cease minting new BUSD tokens.

The withdrawal follows after the New York Department of Financial Services ordered Paxos to stop minting new BUSD tokens on Monday and after the Securities and Exchange Commission of the United States (SEC) issued a Wells notice stating that BUSD was an unregistered security.

With a market cap of $15.71 billion, BUSD is the third largest stablecoin, and about 90% of it is held on Binance.

$400 million BUSD burned: Nansen

According to blockchain intelligence firm Nansen, over $400 million worth of BUSD was burned in less than 20 hours as the New York Department of Financial Services ordered Paxos to stop issuing BUSD.

It mentions that Paxos’ last BUSD issuance was for $209.3 million BUSD on Feb. 4, which was 10 days ago.

Paxos, a blockchain and infrastructure platform for tokenization, has announced that it will end its relationship with Binance for Binance-branded stablecoin BUSD.

As instructed by the New York Department of Financial Services (NYDFS), Paxos will stop issuing new BUSD tokens effective Feb. 21.

Through at least February 2024, BUSD will continue to be fully supported by Paxos and redeemable by consumers who have signed up.

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