• Binance has been suspected of multiple administered moves as the SEC recently cracked down on Paxos for issuing unregistered security, BUSD.
• It appears that Binance’s exchange inflows and outflows have been suspicious with huge transfers of Bitcoin and BUSD recorded just before the SEC crackdown.
• Additionally, speculation suggests that Binance was aware of the issue from the SEC prior to it being cracked down on.
Binance Suspected for Multiple Administered Moves
The Securities and Exchange Commission (SEC) recently cracked down on Paxos due to its issuance of an unregistered security in the form of a stablecoin called BUSD. This has stirred up the entire crypto space as Paxos is registered while BUSD is a regulated entity. Furthermore, it was found that Paxos mints new BUSD tokens on Ethereum blockchain while the same tokens are also available in other chains such as BSC chain, minted on the BNB chain, Polygon etc., thereby allowing users to easily swap tokens between Ethereum and other chains.
Binance’s Inflows & Outflows Under Suspicion
Changpang Zhao (CZ), CEO at Binance, recently clarified that 3500 BTC flew out of their exchange while more than 200 million USDT flew in shortly after that. This timeline created suspicion over their platform as Adam Cochran, a well-known analyst believes that Binance was aware of this issue from the SEC before it got cracked down on. On-chain data provider Skew reported a gigantic BTC swap on their platform right before this news which may have been done in order to maintain reserve status. Moreover, there are speculations saying that they were using these transactions to increase BTC prices and later swapped them back into USDT thereby avoiding any kind of regulatory issues by US authorities.
Attempt To Target ETH-Based Stablecoins?
It is believed by some analysts that this move by Binance could be an attempt to target ETH based stablecoins in order to enhance adoption for their own stablecoin issued on various blockchains such as Polygon or others apart from Ethereum itself. This would allow them to maintain control over all types of digital assets instead of depending only one blockchain for its services which could be risky at times considering recent events surrounding Ethereum network fees and high transaction speeds . Therefore, by targeting multiple blockchains such as Polygon or others apart from Ethereum itself would allow them to avoid any kind of risks associated with only one blockchain network while providing better usability compared other platforms too.
It seems like clear evidence points towards some sort of manipulation happening at play within the exchange between different cryptocurrencies specially regarding Bitcoin and USDT transfers making people believe that a shadow bank system exists within exchange allowing users access fiat currencies without much hassle if they can provide necessary KYC details along with proper documentation required by exchange itself. Even though we cannot make sure how true these rumors are but one thing is certain – exchanges must be extra careful when dealing with customers’ funds so as not get into trouble with authorities or users themselves!
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