Billions of BUSD Stablecoin Being Burned Amid Regulatory Crackdown

• Earlier Paxos burned more than $700 million of BUSD tokens.
• Binance intends to move an astounding 2 billion BUSD stablecoin to a dead wallet.

As per the crypto whale alert, 97,858,390 #BUSD (97,868,345 USD) have been burned at Paxos Treasury following the recent crackdown of authorities. Previously, in the second week of this month, Paxos, the issuer of the $16 billion Binance USD (BUSD) stablecoin, burned more than $700 million of BUSD tokens. That was when Paxos announced it would stop issuing the cryptocurrency amid mounting regulatory pressure, blockchain data shows.

Whopping 2 Billion BUSD by Binance

According to a recent Binance tweet today, the exchange intended to move an astounding lump of its BUSD stablecoin to a dead wallet. Two billion of these tokens will be burned or have been burned already.

At the same time, a similar amount of ETH-based BUSD will be released; these coins were used as collateral here. Chinese crypto journalist and blogger Colin Wu added that according to recent data from Etherscan, the total number of BUSD tokens has shrunk from 16.1 billion to 12.3 billion at the moment.

Earlier, the emitter of BUSD, Paxos Trust, got in trouble with the U.S. Commission on securities and exchanges for not registering the Binance stablecoin as a security. So far, the SEC has marked BUSD as an unregistered security with all the negative legal consequences that may follow.

Paxos is a regulated issuer that has been minting BUSD since 2019 — for more than three years now. By now, the NYDFS regulator of New York has ordered Paxos to stop minting BUSD.