The Wall Street Journal reported that the Securities and Exchange Commission (SEC), was planning on filing a lawsuit against Paxos because it violated investor protection laws.
Binance CEO Changpeng Zhao responded quickly on Twitter to Paxos’ decision to stop offering BUSD.
Paxos informed us that they were directed by New York Department of Financial Services to stop minting new USD by Paxos.
Zhao stated that Paxos assured Binance the funds were fully covered by their bank reserves.
He also said:
Binance will continue to support USD for the foreseeable future.
SEC also took action against Kraken, a crypto exchange that offered crypto staking services. They imposed a $30M penalty on the company and ordered it to stop offering the service.
LeapRate first published the post Paxos Orders to Stop issuing Binance Stablecoin BUSD