Regulator NYDFS Says Paxos Didn’t Administer Binance USD in ‘Safe and Sound’ Manner: Reuters

Paxos “violated its obligation to conduct tailored, periodic risk assessments and due diligence refreshes of Binance and Paxos-issued BUSD customers to prevent bad actors from using the platform,” a spokesman with the regulator told Reuters, saying the token wasn’t being administered in a “safe and sound” manner.