The peer-to-peer crypto marketplace faces federal criminal charges and civil fines for facilitating billions in transactions linked to illicit activity.
Paxful Holdings Inc. will plead guilty to three federal criminal charges and pay a total of $7.5 million in penalties, comprising a $4 million criminal fine and a $3.5 million civil penalty from FinCEN (U.S. financial crimes regulator). Between 2017 and 2019, the peer-to-peer cryptocurrency platform processed $3 billion in transactions despite being aware that its services were used for illicit purposes.