The world’s largest crypto exchange, Binance, faced massive liquidation this past Saturday after the US Securities and Exchange Commission (SEC) brought 13 charges against the exchange and CEO Changpeng “CZ” Zhao earlier in the week. However, troubles for Binance continue to mount as TrueUSD (TUSD) minting via crypto custodian Prime Trust has been paused.
On June 10, TrueUSD announced that TUSD mints via Prime Trust would be paused. This development may spell further trouble for Binance, as they began supporting TUSD stablecoin after the US regulator ordered Paxos to cease minting Binance USD (BUSD) stablecoin.
In spite of the pause, the firm has ensured users that TUSD minting and redemption services will continue operating without disruption. They emphasized that their relationships with other banking institutions remain strong, allowing for seamless TUSD transactions.
Although the majority of TUSD reserves are held in Prime Trust, First Digital, Capital Union, Manual, and BitGo, it’s worth noting that Prime Trust has grappled with its share of challenges. The custodian faced multiple issues after links to FTX and its executives surfaced, including laying off one-third of their workforce in January and holding Binance customer funds through partner banks in March.
Meanwhile, crypto custodian BitGo reached a preliminary agreement to acquire Prime Trust amid swirling rumors of insolvency.
The SEC’s lawsuits against Binance and Coinbase have triggered unfavorable market conditions, culminating in a dramatic crypto market crash. Market makers such as Jump Crypto and Cumberland have relocated liquidity from altcoins, and hedge fund Scimitar Capital is potentially behind the jaw-dropping $2 billion altcoin liquidation.
A staggering $350 million in crypto liquidation has been recorded over the last 24 hours – one of the largest liquidations in the history of the crypto market. The market is widely expected to continue falling in the US market hours, with Bitcoin and Ethereum prices plunging by more than 4% and 5% respectively in the last 24 hours.
It is vital, as always, to conduct your own research before investing in cryptocurrencies, as the author or the publication accepts no responsibility for personal financial loss. The situation is fluid and subject to market conditions, as well as individual interpretation and opinion.
Source: Coingape
