Paxos Faces $48.5 Million Penalty for Binance-Related Compliance Issues

Paxos has agreed to pay a $48.5 million penalty to the New York Department of Financial Services (NYDFS) in response to alleged anti-money laundering violations related to its collaboration with Binance on the Binance USD stablecoin. The settlement, which includes a $26.5 million penalty and $22 million for compliance improvements, signifies a significant step towards addressing these historical breaches.