Former FTX CEO Sam Bankman-Fried invested in Paxos, as did Carlyle Group co-founder David Rubenstein (through his family office Declaration Partners). Paxos recently won approval for stablecoins in Dubai, as well as Singapore.
When Rubenstein interviewed SBF in September 2022 neither man disclosed their Paxos investment, nor did they share that SBF asked Rubenstein to invest in FTX. FTX imploded in November 2022.
Rubenstein later shared SBF's investment proposal wasn't PEU grade. PEU stands for private equity underwriter.
The public has soured on cryptocurrencies with nearly twice the number of people believing crypto is mostly harmful vs. beneficial to society.
CryptoNews reported:
Paxos, a New York-based regulated blockchain firm behind stablecoins PYUSD, BUSD and USDP, appears to be the entity that overpaid $500,000+ to move just 0.074 BTC (~$1,911 at that time) to Binance.
BitCoin.com reported:
On Thursday, August 17, 2023, the Dubai-based digital currency exchange Bybit said it will list Paypal’s new stablecoin, PYUSD. Paypal’s partnership with Paxos Trust Company “underscores the rigorous regulatory approach and commitment to compliance, which are paramount in this evolving landscape.”
UnchainedCrypto reported:
Nasdaq-listed Coinbase alerted users to a subpoena it received from the U.S. Commodities and Futures Trading Commission (CFTC) concerning crypto exchange Bybit.
...Coinbase said it would be forced to respond to the CFTC with information on those users’ exchange accounts. So far, it appears that the recipients of the email were customers that interacted with the Bybit exchange from their Coinbase accounts.
Bybit, an exchange headquartered in Dubai, does not legally offer its services to users based in the U.S.
BlockchainDXB reported:
Since Monday, Paxos, the issuer of the $16 billion Binance USD (BUSD) stablecoin, has burned more than $700 million of BUSD tokens. Paxos Treasury crypto wallet transferred $703 million worth of BUSD tokens to a burn address within 27 hours starting Monday morning, essentially removing the coins from circulation.
In the fall of 2022, Bloomberg reported that Circle complained to the New York State Department of Financial Services that blockchain data showed that Binance did not have enough reserves to back up the BUSD tokens it had issued through Paxos. Binance reportedly supported $1.7 billion of BUSD using collateral worth only $100 million.
The Justice Department recently announced:
Binance Holdings Limited (Binance), the entity that operates the world’s largest cryptocurrency exchange, Binance.com, pleaded guilty today and has agreed to pay over $4 billion to resolve the Justice Department’s investigation into violations related to the Bank Secrecy Act (BSA), failure to register as a money transmitting business, and the International Emergency Economic Powers Act (IEEPA).
“Binance turned a blind eye to its legal obligations in the pursuit of profit. Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform.”
So who is behind the curtain trying to save this nonsense?
Lobbyists, law breakers and PEUs oh my....
Update 12-7-23: FT reported:
...Binance has used aggressive tactics to solicit people to use its services in some of France’s most deprived areas.
There's always a mark.
Update 12-14-23: Unlimited Hangout reported:
In 2022, Bank Leumi was the first Israeli bank to enable crypto trading. They partnered with the U.S.-based company, Paxos because “the company holds several licenses to operate with Bitcoin, altcoins, and blockchain technology…[and] has managed to consolidate important partnerships with PayPal, Revolut, and the Bank of America.” It’s worth noting that, a few years ago, Bank Leumi was under investigation for helping many diaspora Israelis launder their money and eventually admitted “that it conspired to aid and assist U.S. taxpayers to prepare and present false tax returns to the Internal Revenue Service (IRS) by hiding income and assets in offshore bank accounts in Israel and elsewhere around the world.”
Update 1-3-24: No word yet on Paxos handling Rick Flair's brand spanking new Wooooo!Coin
