# NYDFS settles Paxos AML and Binance-diligence failures

> NYDFS required Paxos to pay a $26.5 million penalty and invest $22 million in remediation after finding deficient AML controls and insufficient due diligence and escalation concerning Binance and BUSD.

- URL: https://riadefi.com/regulation/2025-08-07-nydfs-paxos-binance-aml-settlement/
- Posture: Enforcement
- Authorities: New York State Department of Financial Services
- Event date: 2025-08-07
- Version: 1, published 2026-08-07 (first published 2026-08-07)
- Advisor-relevant: yes

## What changed

NYDFS required Paxos to pay a $26.5 million penalty and invest $22 million in remediation after finding deficient AML controls and insufficient due diligence and escalation concerning Binance and BUSD.

## Who it affects

- Stablecoin issuers, trust companies, virtual-currency businesses, investment advisers, and clients

## What is still open

- Completion of the remediation plan and continuing supervisory findings

## What it means for an advisor

- Strengthen issuer and platform diligence for affiliates, distributors, sanctions exposure, geofencing, transaction monitoring, escalation, and board reporting.

## Sources

1. [NYDFS settles Paxos AML and Binance-diligence failures](https://www.dfs.ny.gov/system/files/documents/2025/08/ea20250807-co-paxos-trust-co.pdf) · New York State Department of Financial Services · 2025-08-07


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.