BREAKDOWN: How Big a Deal Was Binance’s Previous $1B BUSD Collateral Gap?

The company admitted to some process challenges in the past, but says things are fixed now.

Today on “The Breakdown,” NLW catches up on some crypto cleanup stories from earlier in the week. He looks at community reactions to research uncovering that at times in 2020 and 2021 Binance peg BUSD was undercollateralized by as much as $1 billion, as well as to the latest fire and fury around Silvergate Bank. 

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Join the most important conversation in crypto and Web3 at Consensus 2023, happening April 26–28 in Austin, Texas. Come and immerse yourself in all that Web3, crypto, blockchain and the metaverse have to offer. Use code BREAKDOWN to get 15% off your pass. Visit consensus.coindesk.com.

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“The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsor today is “Swoon” by Falls. Image credit: Antonio Masiello/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

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