TechFlow news: Artur Schaback, co-founder and former Chief Technology Officer of Paxful, has admitted to failing to maintain an effective anti-money laundering (AML) program and now faces up to five years in prison. The U.S. Department of Justice said Schaback will be sentenced on November 4 and has resigned from Paxful's board of directors.
Under the plea agreement, Schaback will pay a $5 million fine in three installments. The Department of Justice noted that Schaback failed to establish effective AML and KYC procedures within 90 days of launching the business, allowing Paxful to become a tool for money laundering and other criminal activities.
Add to Favorites
Share to Social Media
