Bloomberg: Circle reported to NYDFS that Binance's reserves are insufficient to support BUSD

According to ChainCatcher, stablecoin issuer Circle filed a complaint with the New York State Department of Financial Services (NYDFS) last year, alleging that competitor Binance mismanaged the reserves of its own token, warning regulators that Binance's reserves were insufficient to support BUSD.

In an email, the regulator indicated that NYDFS determined Paxos was unable to "operate BUSD in a safe and sound manner based on extensive regulatory engagement, recent examinations, and Paxos's failure to timely remediate significant issues related to BUSD issued by Paxos," and thus ordered Paxos to cease minting BUSD. (Bloomberg)