One of the world’s largest crypto exchanges, Binace said in an announcement on Twitter on Monday, June 12, 2023, it will exchange 750 million pairs of tether (USDT) and tron (TRX) tokens for tether (USDT) and ether (ETH) in an effort to maintain stablecoin liquidity.
The move comes amid new regulatory scrutiny on the world’s largest cryptocurrency exchange and will help cushion some of the impact of recent hits, including Binance being sued by the Securities and Exchange Commission and US Exchange (SEC).
Tether is the largest stablecoin aiming to maintain a 1 to 1 peg to the US dollar. Tron is the ninth largest cryptocurrency with a market value of USD 6.3 billion or the equivalent of IDR 93.9 trillion (assuming an exchange rate of IDR 14,916 per US dollar). Meanwhile, Ether is the largest after bitcoin, with a market capitalization of USD 210 billion or the equivalent of IDR 3,132 trillion.
Last week, the SEC sued Binance, its CEO and founder Changpeng Zhao, and Binance’s US operations on 13 counts that Binance had engaged in a web of fraud, artificially inflated trading volumes and diverting customer funds.
Binance and Zhao are also accused of secretly controlling US entities while openly claiming they are independent. As a result of this lawsuit, the SEC also asked Binance to freeze assets while the lawsuit was running.
