Paxos: Some users need to re-verify KYC or close their accounts

ChainCatcher news, according to community users, the stablecoin issuer Paxos recently sent emails to users, notifying some users to re-conduct KYC verification, or notifying some users to close their accounts.

Paxos stated in the email: "Paxos is a regulated financial institution, and the law requires us to have a deeper understanding of our customers in order to maintain accurate and up-to-date records." Additionally, in the email requesting account closure, Paxos stated: "We are currently unable to maintain your account because the account information or account activity you provided exceeds our risk appetite."

Earlier today, news reported that Paxos may face a lawsuit from the U.S. SEC due to BUSD.