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Thursday, 07/08/2025 | 16:03 GMT by
Tareq Sikder
- $1.6B illicit Binance USD flows triggered penalties; Paxos to invest $22M to improve compliance.
- The SEC and NYDFS have accused Paxos of inadequate KYC and AML controls.
The New York Department of Financial Services announced a
$48.5 million settlement with Paxos, a crypto infrastructure company. The
settlement concerns Paxos’ partnership with Binance and alleged shortcomings in
its anti-money laundering controls.
In February 2023, Paxos ceased minting Binance USD tokens
following an NYDFS investigation into its relationship with Binance and AML
weaknesses. Binance
then gradually discontinued BUSD support across its platforms.
The settlement includes a $26.5 million fine and a $22
million commitment from Paxos to enhance its compliance program.
NYDFS Highlights Due Diligence Failures
According to NYDFS, Paxos failed to perform regular due
diligence on Binance. The regulator stated that approximately $1.6 billion in
illicit funds passed through Binance via the BUSD stablecoin. As a result, in
February 2023, NYDFS ordered Paxos to stop distributing BUSD.
A Paxos spokesperson said the settlement addresses
βhistorical compliance matters including the prior partnership with Binance,β
and added that the issues were βidentified over two and half years ago and have
since been fully remediated.β It is also stated there was no impact on
customer accounts and no consumer harm. It also noted that BUSD was
successfully wound down in 2023 without losing its dollar peg.
Stablecoin Provider Paxos to Pay $26.5M Fine to Settle Charges Related to Binance
βΊ https://t.co/O8NXol2Yiz https://t.co/O8NXol2Yizβ Decrypt (@DecryptMedia) August 7, 2025
Regulatory Expectations on Risk Management
Adrienne A. Harris, superintendent of NYDFS, emphasized that
regulated firms must have risk management systems suited to their business
risks, including those related to partners and vendors.
AML and Know Your Customer rules remain central
regulatory concerns in the crypto sector. Several companies are awaiting
clearer regulatory guidance on these requirements.
You may find it interesting at FinanceMagnates.com: Paxos
Ups Its Stablecoin Bet: Launches MAS-Compliant USDG.
SEC Issues Wells Notice to Paxos
Earlier, the U.S. Securities and Exchange Commission issued
Paxos a Wells Notice. The SEC warned of possible legal action over the BUSD
stablecoin , accusing Paxos of distributing unregistered securities and
breaching consumer protection laws through its partnership with Binance.
NYDFS issued a similar warning one day later. It pointed to
insufficient KYC controls as a key issue and mandated Paxos to conduct due
diligence on all new customers.
The regulator also noted that while Paxos was authorized to
issue BUSD on the Ethereum blockchain, it had not authorized issuance of
Binance-Peg BUSD on any blockchain.
The New York Department of Financial Services announced a
$48.5 million settlement with Paxos, a crypto infrastructure company. The
settlement concerns Paxos’ partnership with Binance and alleged shortcomings in
its anti-money laundering controls.
In February 2023, Paxos ceased minting Binance USD tokens
following an NYDFS investigation into its relationship with Binance and AML
weaknesses. Binance
then gradually discontinued BUSD support across its platforms.
The settlement includes a $26.5 million fine and a $22
million commitment from Paxos to enhance its compliance program.
NYDFS Highlights Due Diligence Failures
According to NYDFS, Paxos failed to perform regular due
diligence on Binance. The regulator stated that approximately $1.6 billion in
illicit funds passed through Binance via the BUSD stablecoin. As a result, in
February 2023, NYDFS ordered Paxos to stop distributing BUSD.
A Paxos spokesperson said the settlement addresses
βhistorical compliance matters including the prior partnership with Binance,β
and added that the issues were βidentified over two and half years ago and have
since been fully remediated.β It is also stated there was no impact on
customer accounts and no consumer harm. It also noted that BUSD was
successfully wound down in 2023 without losing its dollar peg.
Stablecoin Provider Paxos to Pay $26.5M Fine to Settle Charges Related to Binance
βΊ https://t.co/O8NXol2Yiz https://t.co/O8NXol2Yizβ Decrypt (@DecryptMedia) August 7, 2025
Regulatory Expectations on Risk Management
Adrienne A. Harris, superintendent of NYDFS, emphasized that
regulated firms must have risk management systems suited to their business
risks, including those related to partners and vendors.
AML and Know Your Customer rules remain central
regulatory concerns in the crypto sector. Several companies are awaiting
clearer regulatory guidance on these requirements.
You may find it interesting at FinanceMagnates.com: Paxos
Ups Its Stablecoin Bet: Launches MAS-Compliant USDG.
SEC Issues Wells Notice to Paxos
Earlier, the U.S. Securities and Exchange Commission issued
Paxos a Wells Notice. The SEC warned of possible legal action over the BUSD
stablecoin , accusing Paxos of distributing unregistered securities and
breaching consumer protection laws through its partnership with Binance.
NYDFS issued a similar warning one day later. It pointed to
insufficient KYC controls as a key issue and mandated Paxos to conduct due
diligence on all new customers.
The regulator also noted that while Paxos was authorized to
issue BUSD on the Ethereum blockchain, it had not authorized issuance of
Binance-Peg BUSD on any blockchain.
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Executive Interview| Constantinos Michailides| DGM Tech Solutions Ltd| iFX EXPO International 2025
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Jeff Patterson of Finance Magnates interviews Constantinos Michailides, Founder and CEO of DGM Tech Solutions, at iFX EXPO International 2025. They explore how DGM supports brokers with trading platform administration, the role of AI in streamlining operations, and how blockchain could transform KYC and AML compliance. The conversation also covers evolving regulatory challenges and the future of financial services infrastructure.#iFXEXPO2025 #DGMTechSolutions #Fintech #TradingPlatforms #Blockchain #AI #KYC #FinanceMagnates
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Jeff Patterson of Finance Magnates interviews Constantinos Michailides, Founder and CEO of DGM Tech Solutions, at iFX EXPO International 2025. They explore how DGM supports brokers with trading platform administration, the role of AI in streamlining operations, and how blockchain could transform KYC and AML compliance. The conversation also covers evolving regulatory challenges and the future of financial services infrastructure.
#iFXEXPO2025 #DGMTechSolutions #Fintech #TradingPlatforms #Blockchain #AI #KYC #FinanceMagnates
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Jeff Patterson of Finance Magnates interviews Constantinos Michailides, Founder and CEO of DGM Tech Solutions, at iFX EXPO International 2025. They explore how DGM supports brokers with trading platform administration, the role of AI in streamlining operations, and how blockchain could transform KYC and AML compliance. The conversation also covers evolving regulatory challenges and the future of financial services infrastructure.#iFXEXPO2025 #DGMTechSolutions #Fintech #TradingPlatforms #Blockchain #AI #KYC #FinanceMagnates
π£ Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.
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Jeff Patterson of Finance Magnates interviews Constantinos Michailides, Founder and CEO of DGM Tech Solutions, at iFX EXPO International 2025. They explore how DGM supports brokers with trading platform administration, the role of AI in streamlining operations, and how blockchain could transform KYC and AML compliance. The conversation also covers evolving regulatory challenges and the future of financial services infrastructure.
#iFXEXPO2025 #DGMTechSolutions #Fintech #TradingPlatforms #Blockchain #AI #KYC #FinanceMagnates
π£ Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.
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Jeff Patterson of Finance Magnates interviews Constantinos Michailides, Founder and CEO of DGM Tech Solutions, at iFX EXPO International 2025. They explore how DGM supports brokers with trading platform administration, the role of AI in streamlining operations, and how blockchain could transform KYC and AML compliance. The conversation also covers evolving regulatory challenges and the future of financial services infrastructure.#iFXEXPO2025 #DGMTechSolutions #Fintech #TradingPlatforms #Blockchain #AI #KYC #FinanceMagnates
π£ Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.
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Executive Interview with Kathy Lian from BKTraders | iFX EXPO International 2025
Executive Interview with Kathy Lian from BKTraders | iFX EXPO International 2025
Executive Interview with Kathy Lian from BKTraders | iFX EXPO International 2025
Executive Interview with Kathy Lian from BKTraders | iFX EXPO International 2025
Executive Interview with Kathy Lian from BKTraders | iFX EXPO International 2025
Executive Interview with Kathy Lian from BKTraders | iFX EXPO International 2025
Jeff Patterson of Finance Magnates interviews Kathy Lian, co-founder of BKTraders, at iFX EXPO International 2025. They discuss the explosive growth of the prop trading industry, key takeaways from her book Prop Trading Secrets, evolving funding models, the impact of regulatory scrutiny following the My Forex Funds case, and how geopolitical events are shaping forex market volatility.
#iFXEXPO2025 #PropTrading #Forex #FinanceMagnates #TradingStrategies #Regulation #BKTraders
π£ Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.
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Jeff Patterson of Finance Magnates interviews Kathy Lian, co-founder of BKTraders, at iFX EXPO International 2025. They discuss the explosive growth of the prop trading industry, key takeaways from her book Prop Trading Secrets, evolving funding models, the impact of regulatory scrutiny following the My Forex Funds case, and how geopolitical events are shaping forex market volatility.#iFXEXPO2025 #PropTrading #Forex #FinanceMagnates #TradingStrategies #Regulation #BKTraders
π£ Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.
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Jeff Patterson of Finance Magnates interviews Kathy Lian, co-founder of BKTraders, at iFX EXPO International 2025. They discuss the explosive growth of the prop trading industry, key takeaways from her book Prop Trading Secrets, evolving funding models, the impact of regulatory scrutiny following the My Forex Funds case, and how geopolitical events are shaping forex market volatility.
#iFXEXPO2025 #PropTrading #Forex #FinanceMagnates #TradingStrategies #Regulation #BKTraders
π£ Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.
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βΆοΈ YouTube: / @financemagnates_officialDon’t miss out on our latest videos, interviews, and event coverage.
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Jeff Patterson of Finance Magnates interviews Kathy Lian, co-founder of BKTraders, at iFX EXPO International 2025. They discuss the explosive growth of the prop trading industry, key takeaways from her book Prop Trading Secrets, evolving funding models, the impact of regulatory scrutiny following the My Forex Funds case, and how geopolitical events are shaping forex market volatility.#iFXEXPO2025 #PropTrading #Forex #FinanceMagnates #TradingStrategies #Regulation #BKTraders
π£ Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.
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Subscribe to our YouTube channel for more!
Jeff Patterson of Finance Magnates interviews Kathy Lian, co-founder of BKTraders, at iFX EXPO International 2025. They discuss the explosive growth of the prop trading industry, key takeaways from her book Prop Trading Secrets, evolving funding models, the impact of regulatory scrutiny following the My Forex Funds case, and how geopolitical events are shaping forex market volatility.
#iFXEXPO2025 #PropTrading #Forex #FinanceMagnates #TradingStrategies #Regulation #BKTraders
π£ Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.
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π LinkedIn: / financemagnates
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π₯ TikTok: https://www.tiktok.com/tag/financemag…
βΆοΈ YouTube: / @financemagnates_officialDon’t miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Jeff Patterson of Finance Magnates interviews Kathy Lian, co-founder of BKTraders, at iFX EXPO International 2025. They discuss the explosive growth of the prop trading industry, key takeaways from her book Prop Trading Secrets, evolving funding models, the impact of regulatory scrutiny following the My Forex Funds case, and how geopolitical events are shaping forex market volatility.#iFXEXPO2025 #PropTrading #Forex #FinanceMagnates #TradingStrategies #Regulation #BKTraders
π£ Stay updated with the latest in finance and trading! Follow Finance Magnates across our social media platforms for news, insights, and event updates.
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Adam Button Talks to Finance Magnates on the ForexLive rebranding to InvestingLive
Adam Button Talks to Finance Magnates on the ForexLive rebranding to InvestingLive
Adam Button Talks to Finance Magnates on the ForexLive rebranding to InvestingLive
Adam Button Talks to Finance Magnates on the ForexLive rebranding to InvestingLive
Adam Button Talks to Finance Magnates on the ForexLive rebranding to InvestingLive
Adam Button Talks to Finance Magnates on the ForexLive rebranding to InvestingLive
ForexLiveβs Chief Market Analyst, Adam Button, shares the story behind the most significant shift yet, the move to InvestingLive. In this exclusive interview, Adam discusses why the rebrand is happening, what it means for traders, and how our core mission remains the same: delivering fast, trusted, and intelligent market news.
#ForexLive #InvestingLive #MarketNews #TradeCompass #OrderFlowIntel #iFXEXPO2025 #FinanceMagnates #ForexNews #TradingTools #InvestingNews
ForexLiveβs Chief Market Analyst, Adam Button, shares the story behind the most significant shift yet, the move to InvestingLive. In this exclusive interview, Adam discusses why the rebrand is happening, what it means for traders, and how our core mission remains the same: delivering fast, trusted, and intelligent market news.#ForexLive #InvestingLive #MarketNews #TradeCompass #OrderFlowIntel #iFXEXPO2025 #FinanceMagnates #ForexNews #TradingTools #InvestingNews
ForexLiveβs Chief Market Analyst, Adam Button, shares the story behind the most significant shift yet, the move to InvestingLive. In this exclusive interview, Adam discusses why the rebrand is happening, what it means for traders, and how our core mission remains the same: delivering fast, trusted, and intelligent market news.
#ForexLive #InvestingLive #MarketNews #TradeCompass #OrderFlowIntel #iFXEXPO2025 #FinanceMagnates #ForexNews #TradingTools #InvestingNews
ForexLiveβs Chief Market Analyst, Adam Button, shares the story behind the most significant shift yet, the move to InvestingLive. In this exclusive interview, Adam discusses why the rebrand is happening, what it means for traders, and how our core mission remains the same: delivering fast, trusted, and intelligent market news.#ForexLive #InvestingLive #MarketNews #TradeCompass #OrderFlowIntel #iFXEXPO2025 #FinanceMagnates #ForexNews #TradingTools #InvestingNews
ForexLiveβs Chief Market Analyst, Adam Button, shares the story behind the most significant shift yet, the move to InvestingLive. In this exclusive interview, Adam discusses why the rebrand is happening, what it means for traders, and how our core mission remains the same: delivering fast, trusted, and intelligent market news.
#ForexLive #InvestingLive #MarketNews #TradeCompass #OrderFlowIntel #iFXEXPO2025 #FinanceMagnates #ForexNews #TradingTools #InvestingNews
ForexLiveβs Chief Market Analyst, Adam Button, shares the story behind the most significant shift yet, the move to InvestingLive. In this exclusive interview, Adam discusses why the rebrand is happening, what it means for traders, and how our core mission remains the same: delivering fast, trusted, and intelligent market news.#ForexLive #InvestingLive #MarketNews #TradeCompass #OrderFlowIntel #iFXEXPO2025 #FinanceMagnates #ForexNews #TradingTools #InvestingNews