Binance USD (BUSD) has seen over $500m in outflows since a lawsuit was filed against Binance and its CEO, Changpeng Zhao, which is smaller than the outflows seen following the February crackdown on New York-based BUSD issuer Paxos by the SEC. This could be due to Binance's decision to shift towards other stablecoins, with the exchange ending zero-fee trading for BUSD-listed trading pairs and moving them over to TrueUSD (TUSD)-listed pairs instead. Despite the turbulence, BUSD has maintained its peg and there have been no unforeseen incidents concerning BUSD on Binance chain-based DeFi applications, in which the stablecoin plays a huge role.

(By Shaurya Malwa)