{"id":15062,"date":"2024-07-09T15:35:53","date_gmt":"2024-07-09T12:35:53","guid":{"rendered":"https:\/\/forklog.com\/en\/paxful-co-founder-admits-guilt-in-money-laundering-case\/"},"modified":"2024-07-09T15:35:53","modified_gmt":"2024-07-09T12:35:53","slug":"paxful-co-founder-admits-guilt-in-money-laundering-case","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/paxful-co-founder-admits-guilt-in-money-laundering-case\/","title":{"rendered":"Paxful Co-Founder Admits Guilt in Money Laundering Case"},"content":{"rendered":"<p>Paxful co-founder Artur Schaback has admitted guilt for failing to implement an effective anti-money laundering (AML) program on the company&#8217;s P2P platform.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Paxful Inc. Co-Founder Pleads Guilty to Conspiracy to Fail to Maintain Effective Anti-Money Laundering Program<\/p>\n<p>?: <a href=\"https:\/\/t.co\/B3DCa5DFQY\">https:\/\/t.co\/B3DCa5DFQY<\/a> <a href=\"https:\/\/t.co\/Zbkgi90dEr\">pic.twitter.com\/Zbkgi90dEr<\/a><\/p>\n<p>\u2014 Criminal Division (@DOJCrimDiv) <a href=\"https:\/\/twitter.com\/DOJCrimDiv\/status\/1810425159750238636?ref_src=twsrc%5Etfw\">July 8, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to court documents, the former executive managed the peer-to-peer cryptocurrency exchange platform and money transfer business as Chief Technology Officer from July 2015 to June 2019. During this period, he:<\/p>\n<ul class=\"wp-block-list\">\n<li>allowed clients to open accounts without sufficient <span data-descr=\"Know Your Customer\" class=\"old_tooltip\">KYC<\/span> procedures;<\/li>\n<li>marketed Paxful as a platform not requiring verification;<\/li>\n<li>presented fake AML policies to third parties, knowing the company neither implemented nor adhered to them;<\/li>\n<li>failed to file any suspicious activity reports despite their occurrence.<\/li>\n<\/ul>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;As a result of failing to implement AML and KYC programs, Schaback made Paxful a readily available tool for money laundering, sanctions violations, and other criminal activities, including fraud, romance scams, extortion, and prostitution,&#8221; stated the U.S. Department of Justice.<\/p>\n<\/blockquote>\n<p>Sentencing is scheduled for November 4, with Schaback facing a maximum penalty of five years in prison. The 36-year-old Estonian will also leave Paxful&#8217;s board of directors.<\/p>\n<p>In April 2023, the platform temporarily ceased operations due to a deadlocked legal dispute between co-founders Schaback and Ray Youssef.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Paxful co-founder Artur Schaback has admitted guilt for failing to implement an effective anti-money laundering (AML) program on the company&#8217;s P2P platform. Paxful Inc. Co-Founder Pleads Guilty to Conspiracy to Fail to Maintain Effective Anti-Money Laundering Program ?: https:\/\/t.co\/B3DCa5DFQY pic.twitter.com\/Zbkgi90dEr \u2014 Criminal Division (@DOJCrimDiv) July 8, 2024 According to court documents, the former executive managed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15061,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1292,1162,1526,26],"class_list":["post-15062","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-aml-kyc","tag-court-cases","tag-paxful","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/15062","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=15062"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/15062\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/15061"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=15062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=15062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=15062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}