According to a new report, USDC issuer Circle sounded the alarm about Binance’s BUSD stablecoin and its reserves to the NYDFS.
Circle’s complaint to the New York regulator came before the NYDFS directed Paxos to stop the minting of its Binance USD stablecoin.
Circle Behind Complaint
According to a report, It was stablecoin issuer Circle that submitted a complaint to New York State’s Department of Financial Services (NYDFS) regarding Binance’s reserves. The complaint was made just prior to the NYDFS’s crackdown on the BUSD. In its complaint, Circle stated to the NYDFS that Binance did not have adequate reserves to back up the BUSD tokens that had been issued through Paxos. According to a source familiar with the developments, Circle’s team had uncovered the information by painstakingly studying blockchain data.
According to an NYDFS spokesperson, Paxos had not been administering the BUSD stablecoin in a “safe and sound” manner. This, according to the spokesperson
We współpracy z: https://cryptodaily.co.uk/2023/02/circle-sounded-initial-alarm-over-binance-reserves-to-nydfs
