02-13-2023 icon

Binance vs Circle: War Seems to be Brewing 

By Lucy Adegbe

A recent report by Bloomberg has stated that stablecoin issuer Circle had filed a regulatory complaint against Binance in 2022. 

The report alleged the mismanagement of token reserves before the lawsuit filed last week against the issuer of BUSD, Paxos.

The report says Circle Internet Financial issued a complaint to the New York State Department of Financial Services last year. 

Circle, which operates the USD stablecoin, shares a regulator with the BUSD stablecoin issuer, Paxos Trust Co.

Recently, stablecoin issuer Paxos was set to be under investigation by the SEC. As the issuer of the Binance stablecoin, the situation quickly turned in the direction of the world’s largest crypto exchange platform by trading volume.

Bloomberg has now reported that stablecoin issuer Circle filed a regulatory complaint against Binance in 2022. Specifically, a complaint centred around the perceived mismanagement of token reserves. It was filed months before the regulatory agencies’ intervention.

The report states that Circle “alerted the watchdog last autumn to issues its team had surfaced in blockchain data that showed Binance did not store enough crypto in reserve to support tokens it had issued,” a source told the publication.