Major crypto exchange Binance at first pushed back against a Bloomberg report that its Binance-Peg BUSD stablecoin “does not always appear to have actually been entirely backed by BUSD”.

In a Jan. 10 article, Binance stated the basis for the report– which was later on amended to clarify the distinction in between a pegged and backed stablecoin– was a “timing inequality in backing Binance-Peg BUSD with BUSD”. Based upon an analysis from ChainArgo co-founder Jonathan Reiter, the news outlet reported that the Binance-peg BUSD was often undercollateralized in between 2020 and 2021, a gap that often surpassed $1 billion.However, according to

the exchange, its Binance USD (BUSD)stablecoin was”completely backed by USD cash and cash-equivalent reserves “and the Binance-Peg BUSD was totally backed by BUSD. The reported mismatch apparently revealed data in which the stablecoin was not totally backed sometimes.”Despite variations in the data, at no point were redemptions affected for users,”stated Binance.”There is likewise no impact to BUSD on ERC-20 released by Paxos, which is managed by the NYDFS, examined monthly and backed by USD cash and cash-equivalent reserves.” Cast your vote now!Regulators and media outlets seemingly turned more of their attention to stablecoins following the collapse of Terraform Labs and its TerraUSD token– now TerraClassicUSD. The crypto platform was among the very first in 2022 in

a series of bankruptcies and failures that consisted of Voyager Digital, Celsius Network, BlockFi and FTX, impacting thousands if not millions of users in the crypto space.Related: Hong Kong lawmaker wants to turn CBDC into stablecoin including DeFi Tether, among the largest stablecoins by market capitalization, came under fire for similar claims that its USDT tokens were not completely backed starting with a 2019 suit. In September, a U.S. judge purchased Tether to

provide proof its USDT was backed 1:1. Bitfinex and Tether likewise reached a settlement with the Office of the New York Attorney General in 2021, accepting pay$18.5 million for misrepresenting the degree to which USDT was backed.