Paxful Pleads Guilty to Aiding Crime, Ignoring AML Laws

Bitcoin marketplace Paxful pleaded guilty to a three-count criminal information, admitting it violated the Travel Act by promoting illegal prostitution, operating an unlicensed money transmitting business, and failing to implement an anti-money laundering (AML) program as required by the Bank Secrecy Act. The Department of Justice (DOJ) stated that Paxful knowingly facilitated illicit trades tied to sex work, sanctions evasion, and fraud, earning millions in fees between 2015 and 2019 while processing nearly $3 billion in trades. Prosecutors noted that Paxful actively marketed its lack of identity checks to attract users evading detection and was linked to the classified site Backpage. The company agreed to a $4 million penalty, reduced from an initial $112.5 million based on its current financial condition, and is scheduled for sentencing in February 2026.

(Source：CoinDesk)