Paxos Slapped with $26.5M Fine by NYDFS Over Binance’s BUSD Compliance Meltdown

Crypto's 'stable' coin just got unstable—regulators are cracking down hard.

New York’s financial watchdog didn’t hold back, hammering Paxos with a $26.5 million penalty for failing to keep Binance’s dollar-pegged BUSD in check. Another day, another crypto compliance dumpster fire.

When 'trustless' systems need babysitters…

The NYDFS called out Paxos for 'systemic failures' in its oversight of Binance’s stablecoin—proving once again that decentralized finance isn’t so decentralized when the lawsuits hit. The fine? Just pocket change compared to Binance’s legal bills this year.

Another brick in the wall of crypto regulation.

Paxos gets the fine, Binance gets the headlines—classic finance-sector blame-shifting. Meanwhile, traders keep stacking stablecoins like nothing happened. Because who needs compliance when you’ve got volatility?