2 Billion BUSD to Be Burned by Binance After Paxos Stopped Issuing BUSD
According to a recent Binance tweet, later today, the platform intended to move an astounding lump of its BUSD stablecoin to a dead wallet. Two billion of these tokens will be burned or have been burned already.
At the same time, a similar amount of ETH-based BUSD will be released; these coins were used as collateral here.
Chinese crypto journalist and blogger Colin Wu added that according to recent data from Etherscan, the total number of BUSD tokens has shrunk from 16.1 billion to 12.3 billion at the moment.
Binance announced that it will burn 2 billion Binance-Peg BUSD on BNBChain today, and the BUSD on Ethereum as collateral will be released. Etherscan shows that the total amount of BUSD has dropped from the previous 16.1b to the current 12.3b.
— Wu Blockchain (@WuBlockchain) February 22, 2023
As reported by U.Today earlier, the emitter of BUSD, Paxos Trust, got in trouble with the U.S. Commission on securities and exchanges for not registering the Binance stablecoin as a security. So far, the SEC has marked BUSD as an unregistered security with all the negative legal consequences that may follow.
Paxos is a regulated issuer that has been minting BUSD since 2019 — for more than three years now.
By now, the NYDFS regulator of New York has ordered Paxos to stop minting BUSD.