Circle tipped off New York financial regulators about the insufficient reserves of its competitor, BUSD.
Binance reportedly supported $1.7 billion of BUSD using collateral worth $100 million.
Paxos has now been ordered to stop issuing BUSD, causing the market cap of the stablecoin to plunge.
Circle, the issuer of the USDC stablecoin, reportedly alerted the New York Department of Financial Services (NYDFS) months ago about Binance operating the competing BUSD stablecoins with undercollateralized reserves.
Circle Tipped Off the NYDFS
In the wake of the investigation of Paxos Trust, the issuer of the Pax Dollar (USDP) and Binance USD (BUSD) stablecoins, it has been revealed that Circle tipped off New York’s top financial regulator about the BUSD reserves.
Bloomberg reported that Circle complained to the NYDFS in the fall of 2022 that blockchain data showed that Binance did not have enough reserves to back up the BUSD tokens it had issued through Paxos.
Binance
We współpracy z: https://dailycoin.com/circle-warned-new-york-regulator-about-busd-stablecoin/
