{"id":17621,"date":"2023-02-14T10:54:35","date_gmt":"2023-02-14T10:54:35","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/binance-withdrawals-surge-post-secs-paxos-clampdown\/"},"modified":"2023-02-14T10:54:35","modified_gmt":"2023-02-14T10:54:35","slug":"binance-withdrawals-surge-post-secs-paxos-clampdown","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/binance-withdrawals-surge-post-secs-paxos-clampdown\/","title":{"rendered":"Binance withdrawals surge post SEC&#8217;s Paxos clampdown"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1676366463527-5e810725-3f50-4d95-bf78-d5d29c544e08-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1676366463527-5e810725-3f50-4d95-bf78-d5d29c544e08-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1676366463527-5e810725-3f50-4d95-bf78-d5d29c544e08-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1676366463527-5e810725-3f50-4d95-bf78-d5d29c544e08-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>The SEC issued a wells notice to Paxos concerning the issuance of Binance USD (BUSD) stablecoin.<\/li>\n<li>Shortly after, the NYDFS ordered Paxos to stop issuing BUSD.<\/li>\n<li>While BUSD issuance stopped, Paxos is in charge of BUSD redemptions<\/li>\n<\/ul>\n<p>Crypto exchange <a href=\"https:\/\/coinjournal.net\/exchanges\/binance\/\">Binance <\/a>has seen increased withdrawals over the past 24 hours as investors act on the recent allegation by the US SEC that Binance USD (BUSD) stablecoin is a security. <a href=\"https:\/\/pro.nansen.ai\/exchange-flows\">Data<\/a> obtained from the blockchain intelligence platform Nansen indicate that net outflows from the exchange had hit $788 million in the past 24 hours.<\/p>\n<p>This is the largest net outflow from Binance since December 17 when the exchange\u2019s proof of reserves audit was pulled down from the website of Mazars auditor.<\/p>\n<p>Binance has however come out to array fears saying that funds are safe and that it can handle any amount of withdrawals. The exchange said:<\/p>\n<p><em>\u201cWe run a very simple business model \u2014 hold assets in custody and generate revenue from transaction fees.\u201d<\/em><\/p>\n<p>It all started with the US SEC issuing a wells notice to Paxos Trust Company stating that it was violating investor protection laws by issuing an unregistered security, the BUSD. Following the SEC\u2019s action, the New York Department of Financial Services (NYDFS) ordered <a href=\"https:\/\/coinjournal.net\/news\/blockchain-company-paxos-trust-ordered-to-stop-issuing-binance-usd\/\">Paxos to halt the issuance of BUSD<\/a> and Paxos immediately obeyed the orders.<\/p>\n<h2>Increased BUSD redemptions<\/h2>\n<p>As investors rush to withdraw their funds from Binance, the BUSD token redemptions have also surged. Data from Peckshield shows that over 342 million BUSD tokens have been burned in the past 24 hours.<\/p>\n<p>Investors seem to be cashing out of the BUSD stablecoin as fears of the SEC escalating the issue and filing a lawsuit as is the case with Ripple\u2019s XRP token gain traction.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/binance-withdrawals-surge-post-secs-paxos-clampdown\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) The SEC issued a wells notice to Paxos concerning the issuance of Binance USD (BUSD) stablecoin. Shortly after, the NYDFS ordered Paxos to stop issuing BUSD. While BUSD issuance stopped, Paxos is in charge of BUSD redemptions Crypto exchange Binance has seen increased [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":17622,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/17621"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=17621"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/17621\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/17622"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=17621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=17621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=17621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}