Paxos Slapped with $26.5M Fine Over Binance Ties—Stablecoin Giant Bends Knee to Regulators
Another day, another crypto firm writing a check to make regulators go away. Paxos—the NYDFS-approved stablecoin issuer behind BUSD—just coughed up $26.5 million to settle charges tied to its Binance relationship. No admission of wrongdoing, naturally. Just the cost of doing business when you're dancing with the world's largest crypto exchange.
Behind the fine print: The settlement wraps up a probe into whether Paxos dropped the ball on risk assessments and suspicious activity monitoring. Because when billions in stablecoins are sloshing around, who has time for pesky compliance?
The kicker? This comes as Binance continues its global regulatory tango—proving even the 'good guys' in crypto can't escape the compliance crackdown. Maybe next time they'll remember due diligence isn't just a DeFi buzzword.
