Paxful Co-Founder Confesses to Anti-Money Laundering Oversight Issues
Paxful co-founder Artur Schaback pled guilty to conspiring to operate a crypto exchange platform without effective anti-money laundering policies.
He entered his plea in a California federal court on Monday, potentially facing up to five years in prison as a maximum penalty.
According to the US Department of Justice, 36-year-old Schaback from Estonia managed Paxful between July 2015 to June 2019.
During this time, Schaback allegedly weakened Paxful’s defenses against criminal activity. He made it easy to open accounts without proper identification, advertised Paxful as needing no ID checks, provided fake anti-money laundering policies, and ignored suspicious activity by users, the DoJ said.
Paxful Inc. Co-Founder Pleads Guilty to Conspiracy to Fail to Maintain Effective Anti-Money Laundering Program
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