Bloomberg: Binance admits that BUSD had reserve management deficiencies in 2020 and 2021, sometimes being under-collateralized

ChainCatcher news, according to data from blockchain analysis firm ChainArgos cited by Bloomberg, BUSD was often under-collateralized between 2020 and 2021, sometimes resulting in over $1 billion in missing collateral. Binance acknowledged that there were management flaws in BUSD reserves in 2020 and 2021, leading to occasional under-collateralization and not being fully backed.

A Binance spokesperson stated, "The process of maintaining full backing involves many teams and is not always flawless, which may have led to operational delays in the past," and emphasized that BUSD is currently fully backed, with no impact on Paxos. (Source link)