Main notes
- The settlement includes 26.5 million dollars, in addition to $ 22 million to improve compliance after organizational failure.
- Paxos is claimed to properly monitor Binance, allowing $ 1.6 billion in illegal transactions between 2017-2022.
- The company refers to addressing all the issues specified for more than two years, with no effect on the customer’s account.
The Ministry of Financial Services in New York State (NYDFS) obtained a $ 48.5 million settlement with Paxos Trust due to the alleged palaces to combat money laundering and the failure of due care related to the company’s partnership with the exchange of cryptocurrencies.
According to a journalist NYDFS On August 7, Paxos was rented as a limited confidence company for purposes and gave a license to “engage in virtual currency work” by the department in 2015.
Under the terms of this agreement, Paxos is claimed to perform due care for his partner, Binance. NYDFS claims that Paxos has failed to develop appropriate controls to effectively monitor Binance activities.
The administration specifically cited that “the boundaries of the relaxed geological decline that enable users to reach an unorganized exchange”, which claims to claim 1.6 billion dollars in transactions that include illegal actors between 2017 and 2022. Ijtihad.
Related: Binance reaches 280 million users, and places scenes on the “billion” goal
The settlement conditions indicate that Paxos Trust will pay a $ 26.5 million penalty for New York for “not to perform adequate care for its former partner, Binance, and the system’s failure in the Paxos to combat money laundering program.”
In addition to the penalty, NYDFS says that Paxos has agreed to spend an additional $ 22 million “to improve its compliance program and treat palaces according to an approved plan by DFS.”
A spokesman for Paxos confirmed the agreement via e -mail with Coinspeaker and explained that all the problems concerned had been identified “more than two and a half years ago, and since then they were completely treated. These matters have not had any effect on customer accounts, and there has been no harm to consumers. This represents the solution to this issue, and we are happy to put it behind us.”
However, it seems that there are at least some bottles surrounding the situation on social media. A user on X, who is claiming to be the former SEC Chief of Staff, Amanda Fisher, has published a NYDFS congratulatory message shortly after the publication of the Paxos-Binance press. The message also extends to congratulating “Senior Risk Officer” in Boxos.
“Congratulations to NYDFS on the settlement with Paxos in relation to the company that facilitates $ 1.6 billion in illegal boxes flowing to and from Binance, and congratulates us to the chief risk official in Boxos for my online lecture on encryption.”
It seems that Fisher and Paxos CRO Austin Campbell They recently shared each other on X On the notes related to the current condition of the regulating coil in the United States.
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Slip: Coinspeaker is committed to providing unbiased and transparent reports. This article aims to provide accurate and timely information, but it should not be considered financial or investment advice. Since market conditions can change quickly, we encourage you to check your information and consult with a professional before making any decisions based on this content.
Tristan is a technology journalist and editor -in -chief with 8 years of experience in covering science, technology, financing, politics and business. Before joining Coinspeaker, he wrote for Cointelegraph and TNW.
The post NYDFS Fines Paxos $48.5M Over AML Violations Related to Binance Partnership first appeared on Investorempires.com.
