As per MarsBit, Bitcoin P2P market operator Paxful Holdings Inc. has agreed to plead guilty to U.S. federal charges and will pay a $4 million criminal fine to the U.S. Department of Justice. Additionally, the Financial Crimes Enforcement Network imposed a $3.5 million civil penalty on the company on Tuesday. Paxful had previously shut down in 2023. According to the U.S. Department of Justice, between 2017 and 2019, the company facilitated around $3 billion in transactions, earning over $29 million, while intentionally enabling criminal activities. Despite being aware of criminal behavior on the platform, Paxful failed to file required suspicious activity reports and misrepresented its anti-money laundering policies to third parties. The sentencing date is set for February 10, 2026.
Paxful Pleads Guilty, Fined $7.5M for Facilitating Criminal Activities
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Summary
Paxful, a Bitcoin market news focal point, has pleaded guilty to U.S. federal charges and will pay a $4 million criminal fine. The Financial Crimes Enforcement Network also imposed a $3.5 million civil penalty. Between 2017 and 2019, Paxful facilitated $3 billion in transactions while enabling criminal activities. The company failed to file required suspicious activity reports and misrepresented its anti-money laundering policies. The sentencing is set for February 10, 2026. On-chain news highlights the platform’s role in illicit transactions during its active years.
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