Peer-to-peer crypto exchange Paxful was ordered to pay a $4 million fine for profiting from criminals due to a lack of anti-money laundering checks. Prosecutors stated that Paxful facilitated over 26 million trades worth nearly $3 billion and earned over $29.7 million in revenue from January 2017 to September 2019. The Justice Department said Paxful marketed itself as a platform that didn’t require customer information and presented fake anti-money laundering policies. One of Paxful’s customers was the classified advertising site Backpage, leading to $2.7 million in profits for Paxful. Paxful shut down its operations in November, citing historic misconduct by former co-founders Ray Youssef and Artur Schaback as a reason. Schaback, Paxful’s former chief technology officer, pleaded guilty in July 2024 to failing to maintain an effective anti-money laundering program. Youssef has not been publicly named or charged by US authorities in connection with Paxful.

Read more at Cointelegraph: Paxful To Pay $4M For Moving Funds Tied to Criminal Schemes