Ah, the charm of the modern financial circus. Paxos Trust, that once-trusted keeper of digital coins, now finds itself in a heap of trouble with the NYDFS-a fancy way of saying “big brother” with a badge. They handed Paxos a hefty $48.5 million slapstick for their delightful dance with Binance and a sprinkle of AML (anti-money laundering) fails. 💰🤡
Apparently, our dear regulators decided enough was enough after watching Paxos and Binance’s buddy comedy from 2017 to 2022, during which about $1.6 billion in suspicious transactions wiggled through the cracks like gremlins at a kids’ party. The regulators didn’t just hand out a fine-they mandated a $22 million investment to fix the mess, because apparently, money grows on compliance trees? 🌳💵
It seems Paxos didn’t bother to play detective with Binance, their former partner in launching the stablecoin BUSD. Instead, they left the door wide open for shady characters to waltz right through-think of it as leaving your front door unlocked and expecting no one to steal the silverware. The AML system was more like an ‘ignore’ button, with shared addresses and suspicious documents making it easier for bad actors to pass unnoticed, like sneaky cats at a dog show.
The Great AML Exposure
According to the wise folks at DFS, Paxos’s KYC (know your customer) and CDD (customer due diligence) systems were about as effective as a chocolate teapot. They let risky users slip by, probably chuckling behind their masks. With no proper tracking or warning signs, catching money launderers became as easy as finding a needle in a haystack-except the haystack was On Fire. 🔥
The Regulators Strike Back
Superintendent Harris, who clearly has a sense of humor about these things, declared the importance of risk management frameworks. She hinted that NYDFS would keep knocking on doors until everyone behaves-or at least tries to look busy. As if that wasn’t enough, Paxos was ordered to halt all BUSD production back in February, like a stern librarian shushing a noisy crowd. Now, they’re winding down operations, probably hoping nobody notices the mess. 🎭
Read More
- SPX PREDICTION. SPX cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- AAVE PREDICTION. AAVE cryptocurrency
- NEXO PREDICTION. NEXO cryptocurrency
- EUR HUF PREDICTION
- SKY PREDICTION. SKY cryptocurrency
- SHIB PREDICTION. SHIB cryptocurrency
- Gold Rate Forecast
- EUR CLP PREDICTION
2025-08-07 20:33