TechFlow News: On February 12, according to Cointelegraph, the U.S. Department of Justice announced that peer-to-peer cryptocurrency exchange Paxful has been fined $4 million for violating anti-money laundering (AML) regulations and facilitating illegal activities. The company admitted to facilitating nearly $3 billion worth of transactions between 2017 and 2019, earning $29.7 million in profits. Paxful was accused of deliberately marketing itself as a platform requiring no customer identification verification (KYC) and failing to implement the AML policies it claimed to have in place. The Department of Justice noted that Paxful had partnered with Backpage—a website shut down for hosting illegal prostitution advertisements—earning $2.7 million from that collaboration. Paxful ceased operations in November 2023, and its former Chief Technology Officer, Artur Schaback, has pleaded guilty and is cooperating with the government’s investigation.
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