In an announcement made via a tweet on Monday, cryptocurrency exchange Binance disclosed its plan to facilitate a swap of 750 million tether-tron token pairs for tether-ether in order to ensure the stability of the stablecoin's liquidity. This strategic move comes as Binance faces increased regulatory scrutiny, which has had adverse effects on the exchange. Notably, Binance is currently embroiled in a legal battle with the US Securities and Exchange Commission (SEC), further necessitating measures to mitigate the fallout from these recent challenges.
According to the tweet, the token swap process will commence after 12pm (5:30pm IST) UTC on Monday and will be conducted directly with the tether team.
Tether, the largest stablecoin in circulation, aims to maintain a peg of 1:1 with the US dollar. Tron, ranked as the ninth largest cryptocurrency with a market value of $6.3 billion, and ether, the second largest cryptocurrency after bitcoin with a market capitalisation of $210 billion, will be involved in this token swap.
The SEC filed a lawsuit against Binance, its CEO Changpeng Zhao, and Binance.US last week. The charges levelled against Binance include allegations of deceptive practices, manipulation of trading volumes, diversion of customer funds, and the concealment of control over the US entity. The SEC requested a court order to freeze Binance's assets, leading to the suspension of dollar withdrawal channels by Binance from as early as June 13, as stated in an announcement made by the exchange on Thursday.
Following the SEC's identification of certain cryptocurrencies as securities in its lawsuit against Binance, trading platform Robinhood Markets announced the removal of three such tokens from its platform.
The Tron Foundation and its founder Justin Sun were previously charged with fraud by the SEC in March. Subsequently, the US arm of Binance announced its decision to delist the digital asset token, tron, from its trading platform.
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