Hot Development: Source of FUD Revealed, This Rival Stablecoin Complained Binance and BUSD!

With the FUD wave on Binance today, Paxos announced that it will stop issuing the BUSD stablecoin.

It turned out that a rival stablecoin company was behind this incident.

The Name Behind Allegations About USDC Issuer Circle, Binance, and BUSD Revealed

According to a person familiar with the matter, USDC issuer Circle has enough of NYDFS in reserve to support the tokens that its team uncovered in blockchain data and Binance issued. cryptocurrency warns of problems showing that it is not storing it.

Circle, which operates the USDC stablecoin and is overseen by a regulatory agency partnered with Binance-backed stablecoin firm Paxos Trust Co, revealed last fall in its own team’s Blockchain data and Binance issues, according to a person who wanted to remain anonymous for sharing intimate and proprietary information. warned NYDFS of problems that showed it was not storing enough crypto to support the tokens.

On Monday, the New York regulator said it had directed Paxos to end its relationship with Binance, citing “several unresolved issues with the oversight of Paxos’ relationship” with the exchange regarding BUSD, Paxos’ stablecoin issued under the Binance brand.

In this statement, the regulator added that it does not oversee any token issued by Binance that is intended to serve as a proxy for BUSD, and Paxos is not approved to issue it.

NYDFS said in an email that Paxos was unable to operate BUSD “safely and soundly based on its extensive audit mandate, a recent review, and Paxos’ failure to timely remediate major issues with BUSD issued by Paxos,” a regulatory spokesperson said in an email. Has detected.

*Not investment advice.

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