WSJ News Exclusive | Crypto Firm Paxos Faces SEC Lawsuit Over Binance USD Token

The Securities and Exchange Commission has told Paxos that it plans to sue the company for violating investor protection laws.

WSJ News Exclusive | Crypto Firm Paxos Faces SEC Lawsuit Over Binance USD Token

The SEC issued a letter to Paxos known as a Wells notice, which the agency uses to inform companies of a possible enforcement action. Photo: Graeme Sloan/Bloomberg NewsBy Vicky Ge Huang, Patricia Kowsmann and Dave MichaelsFeb. 12, 2023 6:26 pm ETprint

The Securities and Exchange Commission has told crypto firm Paxos Trust Co. that it plans to sue the company for violating investor protection laws, according to people familiar with the matter, the latest move in the agency’s escalating campaign in crypto enforcement.

The SEC’s enforcement staff issued a letter to Paxos known as a Wells notice, which the agency uses to inform companies and individuals of a possible enforcement action, according to the people.

Full Article