On Monday, Binance announced via a tweet that it plans to exchange 750 million tether-tron token pairs for tether-ether, aiming to preserve the stability of the stablecoin.
This decision is a response to the increased regulatory scrutiny faced by the world’s largest cryptocurrency exchange, this is including a lawsuit filed against Binance by the U.S. Securities and Exchange Commission. The swap of token pairs., scheduled to commence after 12 p.m. UTC on Monday, will be conducted directly with the tether team, as stated in the Twitter tweet.
Tether is the largest stablecoin that aims to maintain a 1:1 peg with the U.S. dollar. Tron is the ninth largest cryptocurrency with a $6.3 billion market value, while ether is the largest after bitcoin, with its $210 billion market capitalization.
Last week, the SEC sued Binance, its CEO and founder Changpeng Zhao. US’s operation alleging in 13 charges that Binance had engaged in a serious “web of deception,” artificially inflated trading volumes and diverted customer funds, and that Binance and Zhao were secretly controlling the U.S. entity while publicly claiming that it was independent.
It will also halt dollar withdrawal channels as early as June 13 after the SEC asked a court to freeze its assets. Binance said this on Thursday.