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Illegal Activity

Use of USDP, BUSD and PAXG for Illegal Activity Prohibited

  1. We may freeze, temporarily or permanently, your use of, and access to USDP and/or BUSD or the US dollars backing your USDP and/or BUSD, with or without advance notice, if we are required to do so by law, including by court order or other legal process.
  2. Your USDP and/or BUSD and the US dollars backing your USDP and/or BUSD may be subject to seizure or forfeiture by law enforcement, and we will comply with legal process in respect thereof.
  3. If we determine after investigation that USDP and/or BUSD has been used, or is being used, for illegal (or sanctioned) activity, we may not permit you to redeem your USDP and/or BUSD for US dollars from Paxos, and, if presented for redemption, such USDP and/or BUSD and the US dollars backing such USDP and/or BUSD may be forfeited.
  4. Any USDP and/or BUSD or fiat currency underlying USDP and/or BUSD that is subject to freeze, seizure, forfeiture or similar limitation on its use imposed by law may become wholly and permanently unrecoverable and unusable, and in appropriate circumstances, may be destroyed.
  5. This applies to all holders of USDP and/or BUSD, regardless of whether the holder is a Member (as such term is defined in the Paxos Terms and Conditions) of Paxos.
  6. By using USDP and/or BUSD, you agree that we may take the actions set forth above and that we will not be liable to you therefore.
  7.  Paxos Compliance must comply with any legal directive to freeze, temporarily or permanently, user access to Paxos issued asset-backed tokens including USD stablecoins (Pax Dollar, Binance USD) and gold-backed stablecoins (PAX Gold). Paxos will only freeze such assets (1) if required to do so by law, specifically when Paxos receives a formal legal directive from a regulator, judicial body, law enforcement agency, or other legal entity having jurisdiction over Paxos, or (2) pursuant to a formal notification by a Paxos partner according to previously agreed contractual terms. Required legal directive formats include court-ordered subpoenas, national security letters, and formal written directives from a regulator with oversight over Paxos.
  8. If any party is aware of improper conduct involving a Paxos supported asset backed token, the party should immediately contact Paxos at [email protected], as well as law enforcement to work towards filing a law enforcement report. Paxos will make reasonable effort to cooperate with law enforcement inquiries and assist with investigations pertaining to Paxos supported asset backed tokens. 
  9. User tokens may subsequently also be subject to seizure or forfeiture if Paxos is instructed to seize such funds by formal written legal directive from a regulator, judicial body, law enforcement agency, or other legal entity having jurisdiction over Paxos. Seizure may not occur under any circumstances absent such a legal directive.
  10. If tokens are seized, the Paxos transaction generation will ensure that the seized funds are sent to a segregated wallet address held by Paxos for the purposes of seizure/forfeiture, until such time as they may be disposed of or otherwise handled as required by law.