Paxos Standard giving trouble to users trying to redeem stablecoins for dollars

30 Dec, 2018
by Alberto Arnaldo
News
Paxos Standard giving trouble to users trying to redeem stablecoins for dollars

With stablecoins becoming a ubiquitous part of the crypto landscape, many traders wonder about which one is the safest or most efficient for their purposes. The latest reports concerning Paxos Standard are not very welcoming towards those who are doing their own research about the stablecoin.

According to a report published today by ccn.com, Paxos Standard has been over questioning users who try to redeem their PAX for dollars. Crypto Twitter is already reacting on the news:

Paxos, a NYSDFS regulated company, promises a stable, supported, no fees and fast (operating outside of banking hours, they claim) one-to-one redemption of PAX for USD.

However, the report assures that a group of 5 traders who trade several million dollars a week, saw their funds withheld for a week or more, with one of them not having been able to fulfill the redemption at publishing time.

The common issue shared by the group of traders was an excess of questions coming from the Paxos Standard team, which seemed to be weary of the origin of the funds, the use of several Binance addresses or the identity of the possible counter parties of the traders. 

Further questions from Paxos Standard team include enquiries about the user´s trading strategy, their name, location, position and salary, or anticipated monthly activity for purchases and redemptions, among many other sensitive details.

The company replied to these allegations without giving specific information about the cases mentioned in the report, but stating the following: 

Yes, we have closed a few accounts, only for very good reasons. It’s all for the sake of AML/KYC compliance. While we don’t comment on the status of individual account activity, we can tell you about the patterns we’ve seen lately.

Read more: Paxos: blockchain settlement platform raises $65 million in new round of fundingPaxos Standard (PAX) is now available on Bittrex

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Read more about:StablecoinTrading

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Gemini Dollar or Paxos Standard?

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Add a comment

till the pax has a backdoor in the code, it is always bring troubles
30 Dec, 2018 - 15:47
Paxos can` bring smth good to users having backdoor. Users should know it
09 Jan, 2019 - 14:47
I agree. it means Paxos is not secure, I would say dangerous to trust
10 Jan, 2019 - 19:13
pax is the worst coin always got complains
31 Dec, 2018 - 14:07
This time it`ll be the same thing, you know..
Paxos has no future now
09 Jan, 2019 - 21:38
only losers use pax!
21 Jan, 2019 - 07:14
pax stable coin is not nice anymore how do big exchanges can afford it
31 Dec, 2018 - 15:59
Do they need to know the size of my trousers? It is impossible to be more disgusting coin, but Paxos could expand this border
01 Jan, 2019 - 20:29
Paxos is a big headache for all obvious reasons.
08 Jan, 2019 - 15:43
Paxos lost trust of people looong ago, coz problems will be following you with it
08 Jan, 2019 - 16:16
It is difficult even to say that Paxos is a normal stablecoin. It looks like pathetic copy of Tether and nothing more. I don't see any sense in the existence of such coins on the market.
08 Jan, 2019 - 22:21
I think that Pax is an empty shell which has no value.
08 Jan, 2019 - 22:54
Pax is not a serious stablecoin. I even don't understand why it was created.
08 Jan, 2019 - 23:53
i dont know who and why created it. is it a news sca??
18 Jan, 2019 - 11:42
Paxos is obviously not for trading...always troubles
09 Jan, 2019 - 15:56
there is nothing good about paxos
09 Jan, 2019 - 16:43
I think that Pax is one of the worst coins I've ever seen.
09 Jan, 2019 - 20:40
I don't see any logical reasons why the was the Pax created. I think it's one more attempt to make a hype.
09 Jan, 2019 - 22:34
I think that Pax is not a normal and reliable 'stablecoin'. I would never invest in it.
10 Jan, 2019 - 20:15
Pax is a little shitcoin which was created to make a hype but it's not any sense to invest in it. Pax doesn't have any future.
10 Jan, 2019 - 21:13
There are several good stablecoins on the market but Pax is not in this list because it doesn't have any capitalization and has a dubious reputation.
10 Jan, 2019 - 22:46
No trust in Paxos until there is a backdoor in the code
11 Jan, 2019 - 14:25
Who cares about this Paxos?
11 Jan, 2019 - 18:30
Closed accounts for very good reasons? I think this reason is to take the money from account
12 Jan, 2019 - 12:28
All excuses of Paxos that this is verification procedure and we must know the source of money sound weird. If they promise fast redemption, it must be fulfilled
13 Jan, 2019 - 17:18
As for me Paxos is not a trustful stablecoin so it's a high risk of such investing for the traders.
13 Jan, 2019 - 18:59
It is a big risk to use Paxos, it is awful coin
13 Jan, 2019 - 19:10
I told before that Pax is not a credible and I didn't change my point of view. It's not a real stablecoin aimed to have a good future.
13 Jan, 2019 - 20:15
I can't find any normal reasons for Pax creating except to make a hype. But personally I don't like such shitcoins on the market.
13 Jan, 2019 - 20:47
I don't see any future for Pax because as for me it will disappear soon after making some money.
13 Jan, 2019 - 21:41
I don't like Pax and other stablecoins which were created after Tether. As I saw they try to copy it but don't provide anything new. Based on this I conclude they created to earn the money but nothing else.
13 Jan, 2019 - 22:41
Paxos is without perspective, to my mind. Maybe I'm wrong... anyway I personally do not use it
14 Jan, 2019 - 15:21
Are there people who use Paxos?
14 Jan, 2019 - 20:32

made my own research regarding paxos..
my attitude is rather sceptical
17 Jan, 2019 - 15:25
I heard about KYC procedure, I think it's strange for Crypto. And in this way paxos tries to manipulate customers
17 Jan, 2019 - 20:58
Paxos shouldn't ask questions about the origin of funds at all. If I want questions, I'll go to the bank. What is the sense then in cryptocurrencies in general?
17 Jan, 2019 - 22:37
no value in paxos, really
18 Jan, 2019 - 12:08
Is Paxos still alive? i hoped it had stopped the activity. how these shitcoin can work?
20 Jan, 2019 - 19:58
It’s plain deed to freeze users funds for Paxos. Cheaters
20 Jan, 2019 - 21:39
even after reading such news for me it's enough not to trust shitcoins like Paxos.
for me that's absolutely clear the it provides some frauds.
21 Jan, 2019 - 20:48
paxos is doing some sh*t all the time. what will be the next?
23 Jan, 2019 - 06:42

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