U.S. Securities and Exchange Commission’s (SEC) latest probe against Paxos, the issuer of BINANCE USD (BUSD), has left the crypto industry triggered. However, Changpeng Zhao (CZ), CEO of Binance came forward to clear the air over the probe.
Binance Assure That Funds Are SAFU
Taking to Twitter, CZ stated that highlighted that is issued and redeemed by Paxos, while, the funds are safe. He stated that the BUSD issuer has been directed to cease minting new Binance USD by the New York Department of Financial Services (NYDFS).
Binance CEO mentioned that BUSD is a stablecoin that is completely owned and managed by Paxos. The probe will result in a decline over time. However, Paxos will continue to service the product and manage further redemptions.
As per the conversation between CZ and Paxos, the funds are safe and fully covered by reserves in their banks. The reserves have been audited many times by various adit firms already, he informed.
CZ in US SEC Vs Paxos
Binance CEO stated that he holds no information about the alleged US SEC vs Paxos lawsuit. As the case is between US SEC and Paxos, CZ holds no expertise on it.
However, he claimed that the crypto industry will have a profound impact if in the future BUSD is ruled as a security by the courts. It will decide how the industry will develop in the jurisdiction.
CZ assured that Binance will continue to support BUSD ahead. While the crypto exchange foresees users migrating to other stablecoins after this probe. The exchange will be making product adjustments accordingly. This will include moving away from using BUSD as the main pair for trading and more.
Binance will act in accordance with ongoing regulatory uncertainty in certain markets. The exchange will be reviewing other projects in the jurisdictions where users are insulated from any undue harm.
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