Founder of Peer-to-Peer Crypto Exchange Paxful Pleads Guilty Over Anti-Money Laundering Program Failures: DOJ

Founder of Peer-to-Peer Crypto Exchange Paxful Pleads Guilty Over Anti-Money Laundering Program Failures: DOJ


The co-founder and former director of peer-to-peer cryptocurrency marketplace Paxful has pleaded guilty to charges related to the platform’s failure to gather sufficient know-your-customer (KYC) information from its users.

Paxful is a virtual currency platform and money transmitting business where users traded crypto assets in exchange for other items.

In a statement, the U.S. Department of Justice (DOJ) says that from July 2015 to June 2019, Artur Schaback marketed Paxful as a platform that did not require KYC and allowed customers to open accounts and trade on the platform without sufficiently collecting information and verifying their identity.

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Court documents also accuse the Estonian national of presenting third parties with fake anti-money laundering (AML) policies that were not implemented on Paxful as well as failing to

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