Binance USD Depeg Event

SEC/NYDFS regulatory action against Paxos

minorFebruary 13, 2023 → February 17, 2026Duration: 26405.3h

Lowest Price

$0.996

-0.4% from peg

Recovery Time

26405.3h

Fully resolved

Severity

minor

<1% deviation

BUSD Regulatory Wind-Down (February 2023)

NYDFS ordered Paxos to stop minting new BUSD tokens.

February 13: NYDFS orders Paxos to cease BUSD minting.

February 14: BUSD briefly dips to $0.996.

Ongoing: BUSD supply steadily declining as tokens are redeemed.

BUSD market cap fell from ~$16B to under $1B

Binance shifted to promoting FDUSD

Set regulatory precedent for stablecoin oversight Resolved after 26405.3h.