According to Forbes [HERE]: “According to a source familiar with Paxos, the company was not aware that Binance intended to manually port the token [BUSD] onto other blockchains. When these revelations came to light, the DFS held multiple meetings with the company in January. The source said, ‘I can say with absolutely 100% confidence that they fully appreciate the difference’ between BUSD and Binance-peg BUSD.”
“For Paxos, the firm saw a gap between BUSD on Ethereum, which it was responsible for, and variants on other blockchains, which were wanted outside of its purview. It is similar logic to saying that the U.S. mint cannot be held responsible for counterfeit dollars. “They want to understand where they can control the risk and where they can’t,” says the source. ‘Once something is moved off [Ethereum], there’s not much they can do.'”
The counterfeiting analogy is an interesting one.