As a result of the SEC’s pressure on Paxos and BUSD, approximately $2.5 billion has been withdrawn on the BUSD side.
In the face of the increasing popularity of cryptocurrencies, the lack of regulation and supervision has also started to be gradually eliminated. US regulators, in particular, have begun to focus on the recent rise in money laundering and fraud in the crypto industry. Aside from its ongoing lawsuit with Ripple, the SEC has set its new target as BUSD. Binance CEO CZ announced that as a result of the SEC’s pressure on BUSD, a withdrawal of $2.45 billion took place on the BUSD side.
Binance CEO CZ Addresses BUSD Panic
Binance CEO Changpeng Zhao (CZ) referred to the $2.45 billion BUSD issue as a result of the SEC’s investigation into Paxos and BUSD.
CZ pointed out that investors acted in a panic. In addition, the CEO announced that $2.45 billion of assets from BUSD have shifted to USDT. Sharing on Twitter, CZ stated that Binance is not involved in BUSD issuance.
https://twitter.com/cz_binance/status/1626453898989805569
The instructions given by the New York regulator to Paxos, which is in charge of issuing BUSD, and the later involvement of the SEC in the investigation, revealed the BUSD crisis.
Binance CEO CZ’s approach to this event, which also negatively affected the crypto money market, was “calm”. CZ gave FUD and attack message and stated that there was no problem in the stock market.
Today, CZ reported that $2.45 billion of money from BUSD has shifted to USDT. Citing the analysis with the title “The landscape is changing”, the CEO added that there are also exits on the USDC side.
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