Paxos agreed to a $48.5M settlement with NYDFS over AML deficiencies in its Binance partnership, involving a $26.5M fine and a $22M commitment to bolster compliance systems.
Paxos Trust Company has agreed to a $48.5M settlement with the NYDFS after allegations that it failed to monitor illicit activities linked to its former Binance partnership. The settlement imposes a $26.5M fine and requires a $22M investment to upgrade its compliance systems. The regulator's investigation revealed that Paxos overlooked red flags, including missing detection of $1.6B in suspicious transactions, and had inadequate systems to report potential money laundering.