Paxos settles with New York regulator for $48.5M over Binance partnership
The New York Department of Financial Services (NYDFS) said the fine was due to a lack of anti-money laundering oversight.
Update Aug. 7, 21:06 UTC: This article has been updated to add a response from Paxos.
The New York Department of Financial Services (NYDFS) reached a $48.5 million settlement with crypto infrastructure company Paxos over its partnership with Binance and alleged failure to uphold sufficient anti-money laundering provisions.
Paxos agreed to pay New York state a $26.5 million penalty and will spend an additional $22 million to overhaul its compliance program, according to Thursday’s announcement.