New York Hits Paxos With Major Penalty Over BUSD Partnership
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Aug 07 2025Paxos Penalty: The New York Department of Financial Services fined Paxos for inadequate checks on Binance's controls to prevent U.S. users from accessing its platform, requiring Paxos to enhance its compliance systems with a $22 million investment.
Legal Troubles for Binance: This penalty follows Paxos' previous halt on issuing BUSD and comes amidst broader legal issues for Binance, including former CEO Changpeng Zhao's guilty plea and a $4 billion settlement with U.S. authorities.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
