Paxful Co-Founder Pledges Guilty to Operational Negligence

On Monday, Artur Schaback, co-founder of Paxful, pleaded guilty to conspiring to operate a cryptocurrency exchange platform with inadequate anti-money laundering measures.

This was done in a California federal court and he could face a maximum sentence of five years in prison.

According to the US Department of Justice, Schaback, who is 36 years old and from Estonia, was in charge of managing Paxful from July 2015 to June 2019.

During this time, he allegedly weakened the company’s safeguards against criminal activity by making it easy to open accounts without proper identification, promoting the platform as requiring no ID checks, providing false anti-money laundering policies, and disregarding suspicious behavior by users.