PANews August 7 news, according to an announcement on the official website of the New York Department of Financial Services (DFS), Paxos was fined $26.5 million for failing to conduct sufficient due diligence on its former partner Binance, and for having significant deficiencies in its anti-money laundering compliance system. The investigation found that Paxos did not effectively monitor suspicious transactions involving Binance, leading to approximately $1.6 billion in illicit funds flowing in and out of Binance from 2017 to 2022. Furthermore, Paxos's customer due diligence and transaction monitoring procedures have long been inadequate, failing to timely identify and address high-risk accounts and behaviors.