The Paxos Steabelcoin issuer concluded a settlement agreement with the Department of Financial Services of the state of New York (NYDFS). The company is accused of non -compliance with the provisions to combat money laundering.

PAXOS agreed to pay the regulator a fine in the amount of $ 26.5 million and additionally allocate $ 22 million to revise his regulatory requirements.

NYDFS said that Paxos did not conduct the required verification of the trustworthiness of the largest crypto -tank Binance. The regulator claims that illegal movements of money in the amount of $ 1.6 billion using the Binance USD (Busd) produced by Paxos Trust were made through the exchange. In 2023, Nydfs demanded that Paxos stop releasing new Busd.

The financial regulator explained: the lack of the “Know your client” (KYC) procedure was another reason to pay attention to the activities of Paxos. According to the requirements of NYDFS, the company is obliged to check each new client.

“Adjustable organizations should effectively manage risks, relations with business partners and third -party suppliers also include this,” said the head of the department Adrienne Harris.

In February 2023, the US Securities and Exchange Commission (SEC) warned Paxos about a possible court persecution. The regulator suspected the company in the distribution of unregistered securities and violation of laws on the protection of consumer rights, which, according to the regulator, consisted in cooperation with Binance for Stablecoin listing. However, in 2024, the SEC stopped investigation against Paxos and Busd Stablecoin.