According to Dune Analytics data shared by crypto analyst Ali Martinez, top crypto exchange Binance saw nearly $1 billion in crypto withdrawals within 22 hours after Paxos was instructed to cease minting new BUSD tokens.
On-chain data from @DuneAnalytics shows that nearly $1 billion in #crypto was withdrawn from @binance in the past 22 hours after @PaxosGlobal was forced to cease minting $BUSD. pic.twitter.com/bFLinafTWs— Ali (@ali_charts) February 14, 2023
The withdrawal follows after the New York Department of Financial Services ordered Paxos to stop minting new BUSD tokens on Monday and after the Securities and Exchange Commission of the United States (SEC) issued a Wells notice stating that BUSD was an unregistered security.
With a market cap of $15.71 billion, BUSD is the third largest stablecoin, and about 90% of it is held on Binance.
$400 million BUSD burned: Nansen
According to blockchain intelligence firm Nansen, over $400 million worth of BUSD was burned in less than 20 hours as the New York Department of Financial Services ordered Paxos to stop issuing BUSD.
Over $400 million $BUSD was burned in less than 20hrs as the New York Department of Financial Services ordered Paxos to stop issuing BUSD— Nansen 🧭 (@nansen_ai) February 14, 2023
According to WSJ, "BUSD will continue to be redeemable through at least February 2024 for U.S. dollars or Paxos' own stablecoin, Pax Dollar." pic.twitter.com/cpU7jiEG5M
It mentions that Paxos' last BUSD issuance was for $209.3 million BUSD on Feb. 4, which was 10 days ago.
Paxos, a blockchain and infrastructure platform for tokenization, has announced that it will end its relationship with Binance for Binance-branded stablecoin BUSD.
As instructed by the New York Department of Financial Services (NYDFS), Paxos will stop issuing new BUSD tokens effective Feb. 21.
Through at least February 2024, BUSD will continue to be fully supported by Paxos and redeemable by consumers who have signed up.