Cryptocurrency
Paxful Co-Founder Faces Jail Time for AML Violations
Tuesday. July 9 at 7:30 PM
1 min. readPaxful's co-founder and former tech chief, Artur Schaback, could serve up to five years in prison for admitting guilt in failing to uphold an effective Anti-Money Laundering (AML) program at the crypto exchange. The US Justice Department revealed that Schaback, the ex-CTO, is set for sentencing on Nov. 4 and will step down from Paxful's board. A plea deal proposes a $5 million fine, to be paid in installments. Schaback and a co-conspirator neglected to establish AML and KYC protocols, enabling criminal activities like money laundering and fraud. They allowed users to trade without proper verification and presented a plagiarized AML policy. Amid legal battles and leadership changes at Paxful, the situation remains complex. Schaback has not responded to requests for comments. The case underscores the importance of regulatory compliance in the crypto industry.