DOJ Orders Paxful to Pay $4M for Promoting Illegal Activities
- The US Department of Justice ordered Paxful to pay $4 million after admitting to promoting illegal prostitution and transmitting criminal funds.
- Paxful failed to enforce know-your-customer and anti-money laundering rules, facilitating nearly $17 million in Bitcoin transfers linked to illegal activities.
- From 2015 to 2023, Paxful processed over 50 million trades worth more than $3 billion, with over $500 million in suspicious transactions.
- The platform’s rapid growth was partly due to the “Backpage Effect,” attracting users due to lax KYC requirements.
- Co-founder Artur Schaback pled guilty in July 2024 for conspiracy related to anti-money laundering failures.
Paxful has been fined $4 million by the DOJ for its role in promoting illegal activities and failing compliance measures. The platform’s growth was fueled by lax regulations, resulting in significant illicit transactions involving Bitcoin.
Source (3.2)https://cryptobriefing.com/crypto-platform-sentencing-paxful/?rand=59535
