Binance USD stablecoin hit with $500M in outflows after CFTC complaint

The U.S. Commodity and Futures Trade Commission's lawsuit against cryptocurrency exchange Binance and its CEO on Monday led to outflows of more than $500M from Binance USD ( BNB-USD ), CoinDesk reported Tuesday, citing CryptoQuant data. The move also came after Binance ended zero-fee trading for BUSD-listed trading pairs a week ago, only to eliminate trading fees just for trueUSD-listed pairs. Although that figure is notable, it's well below the $2B in outflows experienced last month when regulators took aim at Paxos, the issuer of BUSD ( BNB-USD ), the article said. Despite the tumult, BUSD ( BNB-USD ) has kept its peg to the U.S. dollar. The CFTC sued Binance and CEO on allegations that it solicited U.S. users via unregistered crypto derivatives offerings, and directed its employees and customers to hide their true location by using VPNs to evade compliance controls. The company said the complaint was "disappointing as we have been working collaboratively with the CFTC for more than two years." Nonetheless, the battle between Binance and the CFTC will likely result in a settlement in what would be a bullish move for the crypto industry, Bernstein analyst Gautam Chhugani contended. More on the Crypto Clampdown Bitcoin Is Benefitting From Banking Sector Fallout Coinbase Wells Notice: What Is At ‘Stake’ Some banks open doors for crypto firms after Silvergate, Signature downfalls - report G-7 said to promote tougher crypto rules amid global banking drama