According to on-chain data cryptocurrency company Paxos, the SEC’s regulator Binance USD (BUSD) It burned $684 million in BUSD from cash-outs, a day after it firmly denied allegations that it was a security.
Paxos, formerly the issuer of BUSD, stopped issuing stablecoins after the company received a Wells notice from the Securities and Exchange Commission (SEC).
Paxos stated that dollar parity repayments for BUSD will be supported until at least February 2024. The company will continue to support the token for old and new users, but will not mint the new token.
Paxos destroys the tokens by sending BUSD to a burn address to facilitate refunds, initiating a smart contract-driven process that returns US dollars to users from the stablecoin’s underlying reserve.
According to Arkham data, in addition to the $144 million withdrawn in cash yesterday, millions of dollars in cash were withdrawn today.
With the repayments, the total amount of BUSD in circulation fell from $16 billion to $15.81 billion.
There was information that Binance’s stablecoin BUSD was reported to the SEC by USDC distributor Circle, another stablecoin issuer company. However, Binance CEO Changpeng Zhao said that he did not believe that Circle had made such a move because it would hurt them too.
Binance CEO also announced that he will continue to support BUSD for the foreseeable future. However, the CEO said that stablecoins are needed not only for the US dollar but also for other currencies.
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price tracking right now by downloading our apps!