New York Department of Financial Services fines Paxos $26.5 million and requires it to invest an additional $22 million in compliance

The investigation found that Paxos failed to effectively monitor suspicious transactions involving Binance, resulting in approximately $1.6 billion in funds suspected of illicit activities flowing into and out of Binance between 2017 and 2022. Furthermore, Paxos's customer due diligence and transaction monitoring procedures were chronically inadequate, failing to promptly identify and address high-risk accounts and activities.