STATEMENT FROM PAXOS IN RESPONSE TO THE NYDFS, ATTRIBUTED TO PAXOS SPOKESPERSON

AUGUST 7, 2025  – “Paxos has reached an agreement with the NYDFS in response to historical compliance matters including the prior partnership with Binance. This agreement includes a $26.5M monetary penalty. For the avoidance of doubt, the compliance issues discussed are historical issues that were identified over two and half years ago and have since been fully remediated. These matters had no impact on customer accounts and there was no consumer harm. This marks the resolution of this matter and we are pleased to put it behind us.

“BUSD was approved and regulated by the New York State Department of Financial Services. In early 2023 after receiving an order to cease minting the token, Paxos successfully wound down more than $16B in BUSD market cap without the token ever de-pegging which was a testament to the strength of Paxos’ treasury management. There are no new claims regarding Paxos’ relationship with Binance or the issuance of BUSD, and Paxos’ other white-labeled stablecoins operate on similar models with different partners and have not faced any regulatory issues.

“Paxos was founded on a deep belief in adherence to regulation and compliance and we have invested significant resources in building a best-in-class compliance operation. No other blockchain and tokenization platform has shown more dedication to seeking oversight and complying with global institutional standards as Paxos has done for over a decade – and we are committed to maintaining that moving forward.”