{"id":551111,"date":"2023-02-13T02:44:29","date_gmt":"2023-02-12T23:44:29","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/breaking-paxos-to-face-sec-lawsuit-over-binance-usd-report\/"},"modified":"2023-02-13T02:44:29","modified_gmt":"2023-02-12T23:44:29","slug":"breaking-paxos-to-face-sec-lawsuit-over-binance-usd-report","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/breaking-paxos-to-face-sec-lawsuit-over-binance-usd-report\/","title":{"rendered":"# Breaking: Paxos to face SEC lawsuit over Binance USD \u2014 Report"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a36543573992\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a36543573992\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/breaking-paxos-to-face-sec-lawsuit-over-binance-usd-report\/#%E2%80%9D_Breaking_Paxos_to_face_SEC_lawsuit_over_Binance_USD_%E2%80%94_Report_%E2%80%9C\" >&#8221; Breaking: Paxos to face SEC lawsuit over Binance USD \u2014 Report &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Breaking_Paxos_to_face_SEC_lawsuit_over_Binance_USD_%E2%80%94_Report_%E2%80%9C\"><\/span>&#8221; Breaking: Paxos to face SEC lawsuit over Binance USD \u2014 Report &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDIvYzQxODdmMTgtZGI2YS00ZmM2LWI1MmMtZmFlOTgyMzM4MzY1LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4bbf85c5>The United States Securities and Exchange Commission (SEC) has reportedly told stablecoin issuer Paxos Trust Co. that it&#8217;s planning to sue the firm for violations of investor protection laws relating to Binance USD (BUSD).\u00a0<\/p>\n<p>According to a Feb. 12 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/amp\/articles\/crypto-firm-paxos-faces-sec-lawsuit-over-binance-usd-token-8031e7a7\">report<\/a> in The Wall Street Journal citing people familiar with the matter, the SEC issued a Wells Notice to Paxos \u2014 a letter the regulator uses to tell companies of planned enforcement action.<\/p>\n<p>The notice alleges that Binance USD is an unregistered security, according to the people. <\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.investopedia.com\/terms\/w\/wellsnotice.asp\">According<\/a> to Investopedia, after a Wells Notice is received, the accused is allowed 30 days to respond to it via a legal brief known as a Wells Submission, which includes arguments to prove why the charges should not be brought against prospective defendants.<\/p>\n<p>Paxos is the owner and issuer of BUSD \u2014 a U.S. Dollar-collateralized stablecoin \u2014 which has been around since the firm struck a partnership with crypto exchange Binance in September 2019. It is the third largest stablecoin with a market cap currently exceeding $16 billion.<\/p>\n<p>Paxos is also the creator of the Paxos Dollar (USDP) stablecoin which was launched in 2018 and is also behind digital asset exchange itBit which it launched in 2012 alongside the founding of Paxos.<\/p>\n<p><em><strong>Related: Coinbase will &#8216;h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ily defend&#8217; staking in US courts, says CEO <\/strong><\/em><\/p>\n<p>Reports emerged last week that Paxos was being investigated by the New York Department of Financial Services (NYDFS), however,\u00a0the exact motive behind the probe is currently unclear.<\/p>\n<p>Cointelegraph contacted Paxos, Binance and the SEC for comment but did not receive an im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te response.<\/p>\n<p class=\"post-content__disclaimer\">This is a developing story, and further information will be added as it becomes available.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/stablecoin-issuer-paxos-to-face-sec-lawsuit-over-binance-usd-report\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Breaking: Paxos to face SEC lawsuit over Binance USD \u2014 Report &#8220; The United States Securities and Exchange Commission (SEC) has reportedly told stablecoin issuer Paxos Trust Co. that it&#8217;s planning to sue the firm for violations of investor protection laws relating to Binance USD (BUSD).\u00a0 According to a Feb. 12 report in The&#8230;<\/p>\n","protected":false},"author":1,"featured_media":551112,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/c4187f18-db6a-4fc6-b52c-fae982338365.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[76605,74898,70934,72287],"class_list":["post-551111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-paxos","tag-sec","tag-regulation","tag-security"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/551111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=551111"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/551111\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/551112"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=551111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=551111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=551111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}