According to a press release by a spokesperson for the New York Department of Financial Services (NYDFS), Paxos Trust Company did not do what was necessary to prevent the abuse of BUSD.
According to a statement given to Reuters by a spokesperson for the New York Department of Financial Services, Paxos is launching the Binance-licensed BUSD stablecoin. steps to prevent abuse did not throw.
of BUSD “smoothly and safely” NYDFS spokesperson, who said that it is not managed “BUSD issued by Binance and Paxos has not fulfilled its obligation to conduct periodic risk assessment and due diligence on its customers” told.
According to NYDFS officials, the company failed to fulfill this obligation. “prevent misuse of the platform” He did not take the necessary precautions.
NDFS management blamed Paxos for not adequately overseeing Paxos’ relationship with Binance. Binance to stop issuing USD had given instructions. Paxos management also decided to stop its relations with Binance over BUSD.