Cryptocurrency exchange Paxful fined $4 million for violating anti-money laundering regulations

2026-02-12 03:31:25

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Deep Tide TechFlow News, February 12 — According to Cointelegraph, the U.S. Department of Justice announced that peer-to-peer cryptocurrency exchange Paxful has been fined $4 million for violating anti-money laundering regulations and facilitating illegal activities. The company admitted to facilitating nearly $3 billion in transactions between 2017 and 2019, earning $29.7 million from these activities. Paxful was accused of deliberately promoting itself as not requiring customer information verification (KYC) and failing to implement its claimed anti-money laundering policies. The Department of Justice noted that Paxful had previously collaborated with Backpage, a website shut down for illegal prostitution ads, earning $2.7 million from this partnership. The company ceased operations in November 2023, and former CTO Artur Schaback has pleaded guilty and is cooperating with government investigations.

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