• Binance’s exchange inflows and outflows have been called into question due to suspicious transfers of Bitcoin and BUSD just prior to the SEC crackdown.
• The platform has now been speculated to be in deep waters as it is suspected of carrying out multiple administered moves, such as attempting to target the ETH-based stablecoin with a view to increasing the adoption of BSC-based stablecoin.
• Recently, the SEC has prohibited Paxos from minting new BUSD stablecoins, as they are considered unregistered securities.
BUSD and SEC Crackdown
Binance’s exchange inflows and outflows appear to be suspicious as huge transfers of Bitcoin and BUSD were recorded just before the SEC crackdown. The SEC recently restricted Paxos from minting new BUSD stablecoins, which are registered securities, deeming them unregistered. Besides, it appears to be an attempt by Binance to target the ETH-based stablecoin in order to enhance the adoption of their own BSC-based stablecoin. This has led many analysts to speculate that Binance was aware of this issue prior to its discovery by the SEC.
BTC Outflow on Binance
The platform appears to be in deep waters as there have been allegations that it is involved in multiple administered moves both historically and currently. Recently, CEO Changpang Zhao (CZ) clarified a massive withdrawal of 3500 BTC which moved out of the exchange at around the same time when 200 million USDT was being transferred across all centralized exchanges. This raises suspicion over why these transactions took place so close together.
Suspicion Over BTC Swap
On-chain data provider Skew reported a gigantic BTC swap on Binance which may have been used for reserve status purposes when Adam Cochran, an analyst suggested that Binance knew about this issue long before it was cracked by the SEC. It is possible that these tokens were used for price manipulation purposes or other illicit activities although no evidence exists either way as yet.
Issuance Still Possible By Binance?
Despite Paxos halting its issuance of new tokens, there is still speculation over whether or not Binance will continue issuing them due to their ability to swap tokens between Ethereum and other chains through their binance-peg token system which allows users access USD using their platform solution . As such, it remains unclear if they will face any repercussions or if they will remain unscathed after this event has taken place.
Conclusion
Binance’s exchange inflows and outflows appear suspicious after recent events regarding Paxos halting its issuance of new tokens along with large amounts of Bitcoin being transferred shortly before this took place on their platform too. There is further speculation over whether or not they will still continue issuing tokens using their binance-peg token system despite being under investigation by the US Securities Exchange Commission (SEC). However, only time will tell what kind of punishments they may face should they choose not comply with regulatory standards set forth by such organizations.