Paxos Faces Scrutiny Over Compliance Failures Despite Public Boasts
Paxos, a prominent player in the digital asset space, has come under fire for what critics describe as a disingenuous portrayal of its compliance operations. The New York Department of Financial Services (NYDFS) recently settled with the company, revealing significant lapses in its regulatory adherence. These failures starkly contrast with Paxos's public image as a compliance-focused entity, often touted in testimonies before government bodies.
Internal chaos allegedly plagued Paxos's compliance operations, even as executives touted the company's robust funding and regulatory diligence. The settlement underscores a troubling disconnect between rhetoric and reality, raising questions about accountability in the rapidly evolving web3 landscape.
