Binance Pauses Deposits of Tether and USD Coin

  • Binance paused deposits of stablecoins Tether and USD Coin early Thursday. 
  • The company didn’t provide a reason for the halt on it’s website. 
  • Both tokens maintained their dollar peg as of presstime. 

Cryptocurrency exchange Binance paused customer deposits of stablecoins USD Coin and Tether Thursday morning without explanation. 

The company posted an update around 7:00 a.m. asserting deposits of both tokens “have been temporarily suspended until further notice.” Both tokens maintained their peg to the US dollar as of presstime. Binance did not immediately respond to Insider’s request for comment. 

Crypto markets have entered a new period of volatility in recent days in light of the collapse of FTX, the world’s second-largest cryptocurrency exchange. FTX filed for bankruptcy last Friday and has since replaced Sam Bankman-Fried as chief executive. 

Stablecoins are considered a haven investment within crypto markets given their peg to a fiat currency. Recent turmoil with the fall of FTX has added more scrutiny to cryptos as well as concerns over liquidity, which could draw investigations from regulators and federal agencies beyond probes into Sam Bankman-Fried’s waning crypto empire. 

Meanwhile, Binance CEO Changpeng Zhao has slammed Bankman-Fried for missteps and lying to both investors and regulators over allegations of mishandling of client funds.