According to a Bloomberg report, Binance failed to follow its BUSD reserve procedure from 2020 to 2021 because it did not keep sufficient reserves to support its BUSD stable currency lending.

Jonathan Reiter, founder of ChainArgos, a blockchain technology analysis enterprise, shared statistical data. According to the data, improper management resulted in insufficient pledge of Binance-peg BUSD for three times from 2020 to 2021, with each pledge vacancy exceeding US $1 billion.

In addition, Reiter's analysis shows that the amount of Binance's BNB intelligent chain put in Binance peg BUSD on the network indicates that the exchange has launched a new Binance peg BUSD token during this period, while the equivalent amount of the public issued BUSD token of Paxos has not been locked, and it is used as collateral in Taifang Wallet.

It is noteworthy that when customers choose to buy Binance Peg BUSD, Binance chooses to buy BUSD from Paxos, and then forges the same amount of Binance Peg-BUSD tokens on the blockchain technology they choose. Later, the customer will receive his Binance Peg BUSD and lock the same amount of BUSD on the Ethernet coin.

Even so, a spokesman for Binance confirmed that the BUSD pinned by Binance has been fully applied at this stage and has no impact on the BUSD of Paxos. He said that what happened earlier was mainly due to business process delays.The spokesman said:

"Recently, this process has been greatly improved according to the improvement difference check to ensure that the 1:1 level is maintained continuously."

After the collapse of FTX last year, Binance faced the problem of increasing customer withdrawal and decreasing trading volume. According to the report on December 14, the withdrawal of cash from the exchange by BUSD caused the supply of stable currency to drop by more than 15% within 24 hours.

However, Changpeng Zhao, CEO of Binance, defended the exchange and said that the company would break through in the test