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Stablecoin Issuer Circle Warned New York Regulator About Rival Binance’s Token

  • Binance didn’t fully back some stablecoin proxies, Circle said
  • Circle shares regulator with Binance’s Partner Paxos
Updated on

Stablecoin giant Circle Internet Financial Ltd. issued a complaint to the New York State Department of Financial Services last year about rival crypto firm Binance’s mismanagement of reserves for its own tokens, months before the regulator told another stablecoin issuer to halt its partnership with the trading platform.

Circle, which operates the USDC stablecoin and shares a regulator with Binance-branded stablecoin firm Paxos Trust Co., 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, according to a person familiar with the matter who asked not to be named discussing private information.