The New York Department of Financial Services (NYDFS) is reportedly investigating Paxos, a cryptocurrency firm, for allegedly violating its licensing conditions. The investigation may have been prompted by a complaint filed by Circle, another cryptocurrency firm, which has accused Paxos of violating the state's rules on custody and safeguarding of client assets. The NYDFS has not yet commented on the investigation, and Paxos has denied any wrongdoing.
Source: Coinedition