Paxos settles with New York regulator for $48.5M over Binance partnership
The New York Department of Financial Services (NYDFS) said the fine was due to a lack of anti-money laundering oversight.
The New York Department of Financial Services (NYDFS) reached a $48.5 million settlement with crypto infrastructure company Paxos over its partnership with Binance and alleged failure to uphold sufficient anti-money laundering provisions.
Paxos agreed to pay New York state a $26.5 million penalty and will spend an additional $22 million to overhaul its compliance program, according to Thursday’s announcement.
NYDFS said Paxos failed to conduct regular due diligence on Binance and saw about $1.6 billion in illicit flows from and to the crypto exchange via its stablecoin Binance USD (BUSD).
