Binance Processes $1B BUSB Withdrawals

W

hile Binance is currently facing regulatory oversight on its platform, the exchange processed an astonishing $1 billion worth of withdrawals in a single day. In addition to this feat, Paxos—the issuer behind the popular BUSD stablecoin—eliminated more than $342 million from circulation during that same 24 hour period as indicated by Etherscan records.

After encountering regulatory scrutiny, Binance users have been rapidly withdrawing their crypto assets from the exchange.

In the preceding day, Wu Blockchain data recorded outflows of $621 million before relinquishing to a more manageable rate of $460 million as news broke.

By comparison, the November 2022 withdrawals when FTX collapsed were staggering; in only 7 days, Binance processed more than $6 billion worth of withdrawal transactions.

In the past 24 hours, Paxos, issuer of Binance USD (BUSD), burnt a whopping $342 million worth of their renowned stablecoin. This vast sum totals to over $300M US dollars redeemed!

When users exchange their BUSD tokens for the traditional currency, they are eliminated ("burned") from circulation.

On February 13th, the New York Department of Financial Services mandated that the stablecoin issuer cease minting their currency as it was in breach with its duties to assess and refresh risk assessments associated with Binance.

Mike

An editor at Coincrop

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Mike is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely putting his latest car project back together.