Binance-Linked Cryptocurrency Case Ends! $48.5 Million to Be Paid!

The New York financial regulator announced that Paxos Trust has reached a $48.5 million settlement with Binance over deficiencies in its anti-money laundering and customer due diligence processes.

He will pay a fine of $26.5 million!

The New York Department of Financial Services (NYDFS) announced that it has reached a settlement with Paxos Trust, a stablecoin issuer under investigation for allegedly violating anti-money laundering laws.

Under this agreement, Paxos will pay a $26.5 million fine for failing to conduct adequate due diligence and for systemic deficiencies in its anti-money laundering program.

In addition to the $26.5 million penalty, Paxos agreed to invest an additional $22 million to improve its compliance program and address deficiencies, according to a plan approved by the NYDFS.

“After receiving regulatory approval to operate as a virtual asset company in 2015, Paxos jointly issued the Binance USD (BUSD) stablecoin with Binance. Paxos failed to do so, despite Binance being required by law to conduct regular due diligence and risk management. Approximately $1.6 billion (approximately 2.1 trillion won) worth of virtual asset transactions processed by Binance between 2017 and 2022 were associated with addresses involved in illicit activities,” NYDFS explained.

*This is not investment advice.