Crypto Firm Paxos Faces SEC Lawsuit Over Binance USD Token

By Vicky Ge Huang, Patricia Kowsmann and Dave Michaels. February 12, 2023. (Wall Street Journal).

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.

The notice alleges that Binance USD, a digital asset that Paxos issues and lists, is an unregistered security, according to the people.

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