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Nearly $1 billion withdrawn from Binance crypto exchange in 24 hours

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Yesterday, February 13, one of the largest outflows of funds was recorded on the Binance crypto exchange – $ 916 million was withdrawn per day. This was the largest daily withdrawal of funds since November 24 last year, when Binance users withdrew assets for $ 1 billion, informed RBC resource with reference to data from the Dune analytical platform.

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This happened after the issuance of an order from the New York Department of Financial Services (NYDFS) to ban Paxos from further issuance of Binance USD (BUSD) stablecoins, as well as reports of plans by the US Securities and Exchange Commission (SEC) to sue Paxos from -for the fact that she was engaged in the issuance of BUSD without its proper registration as a security. Paxos responded by stating on Feb. 13 that BUSD is not a security under federal securities laws, as well as “vigorously litigate”if a claim is filed.

After the actions of the regulator, the Binance Coin (BNB) cryptocurrency rate fell by 11.5%, from $321 to $284, then the price of the cryptocurrency rose slightly to $296 as of 21:00 Moscow time on February 14. In turn, the stablecoin BUSD lost its peg to the US dollar, but not for long and now fluctuates around $1-0.99. Binance CEO Changpeng Zhao announced on Twitter that the token has re-pegged, notingWhat “FUD (Fear, uncertainty and doubt, fear, uncertainty and doubt) is a temporary phenomenon”.

Binance USD is the third largest stablecoin after Tether (USDT) and USD Coin (USDC) with a capitalization of $15.47 billion as of February 14 (according to CoinGecko). On February 13, the capitalization of BUSD was $16.1 billion, that is, the loss amounted to $400 million per day. Trading in a pair with a token accounts for more than 25% of the total trading volume of Binance. According to Zhao, due to the ban on the issuance of new tokens, the capitalization of BUSD will decrease, as will its attractiveness for investors.

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