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I fully think there's something shady going on, but the best “devil's advocate” opinion I can come up with is that stablecoins are in a pretty precarious legal position wrt. money laundering laws, and knowing which institutions they bank with gives the US government more parties to put pressure on.

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But fully audited and regulated stablecoins like USDC and BUSD exist and operate freely, so this doesn’t seem likely.

Who handles the banking for USDC again?

USDC is not audited.

https://www.centre.io/usdc-transparency

> Top five accounting services firm Grant Thornton LLP issues attestations each month on the US dollar denominated reserves that back the USDC tokens in circulation.

Same for BUSD:

https://paxos.com/busd/

> A top auditing firm will attest to the matching supply of BUSD tokens and underlying U.S. dollars on a monthly basis.

Attestations are not audits, in significant and important ways.

They already disclosed the details to the NY office in question...the government know

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