Sigma

Tether USDt

<figure><img src="https://u.today//sites/default/files/styles/1200x900/public/2023-06/35933.jpg" alt="Cover Image" width="800"
 height="500">
 <figcaption>Cover image via <a href="https://u.today/">U.Today</a></figcaption>
 </figure>Half a year ago, the U.S.-based platform of the largest cryptocurrency exchange by trading volume, <a href="https://u.today/binance-coin-bnb-price-analysis-for-june-7">Binance</a> US, found itself in an unusual situation — it was running out of Tether (USDT), the most traded stablecoin on the crypto market. The scarcity was so severe that USDT and USDC (another popular stablecoin) withdrawals had to be paused for several hours, raising concerns among users of Binance's US <a href="https://twitter.com/jconorgrogan/status/1666543899026898944">subsidiary</a>.Just when things seemed dire, substantial USDT deposits began to flow in, replenishing Binance US's depleted wallets. Today, we have a clearer picture of this mysterious replenishment. The U.S. Securities and Exchange Commission (SEC) has confirmed that the funds came from the Sigma Chain, owned by Changpeng Zhao (CZ), the CEO of Binance.<blockquote class="twitter-tweet">6 months ago, BinanceUS ran out of USDT and withdrawals were haltedAfter a few hours, the wallets were topped up by Binance funds- Today the SEC confirmed that the CZ-owned Sigma Chain was behind the cash infusion <a href="https://t.co/qWNl8z0ttH">pic.twitter.com/qWNl8z0ttH</a>— Conor (@jconorgrogan) <a href="https://twitter.com/jconorgrogan/status/1666543899026898944?ref_src=twsrc%5Etfw">June 7, 2023</a></blockquote>Considering the trading volume that <a href="https://u.today/tether-usdt-replaces-swift-for-usd-operations-of-xapo-bank-details">USDT</a> represents on Binance US (with three pairs bringing in $64 million in volume in the past 24 hours), this lack of liquidity was a significant issue. Not only does it halt a considerable portion of trading activity, but it also raises questions about the exchange's solvency and reliability.<a href="https://u.today/rich-dad-poor-dad-author-foresees-greatest-crash-ever-urges-to-buy-bitcoin">card</a>On the surface, CZ's move may seem like a helping hand during a liquidity crisis. However, from a regulatory standpoint, this raises concerns. If a significant portion of an exchange's liquidity comes directly from the CEO's funds, it could open doors to potential manipulation and conflicts of interest. The exchange's dependence on its CEO's personal assets could cast doubt on its financial stability.While the incident did not affect the day-to-day operations of Binance US substantially at the time, it highlighted potential gaps in the exchange's operational resilience. If <a href="https://u.today/shiba-inu-shib-reaches-final-destination-heres-what-it-means">market</a> conditions were to turn unfavorable suddenly, would CZ be ready to bail out the exchange again?

Binance CEO Behind Something Extremely Sketchy, SEC Confirms

U_Today

Andre artikler udgivet 8. jun. 2023

Anomaly In The Matrix

Markets Dip Again as XDC Defies the Odds with Minor Gains

Binance claims Gensler once offered to be an ‘Informal Advisor’

IMPROVEMENT PROCESS - HOW TO USE OPTIMISM

SEC Chair Allegedly Once Offered to Be Binance Advisor, Is Personal Vendetta at Play?

Sparkling New Address Makes Massive Ethereum Withdrawal, Is Sell-off Incoming?

Join our free newsletter for daily crypto updates!