#Paxful a peer-to-peer crypto trading platform, has been fined $4 million after pleading guilty to serious compliance violations.
U.S. authorities said the company failed to follow anti-money laundering rules and knowingly allowed illegal funds to move through its platform. Prosecutors claim Paxful processed transactions linked to criminal activities, including sites involved in illegal prostitution.
Between 2015 and 2019, the platform reportedly operated without proper KYC controls and failed to report suspicious transactions. Although prosecutors initially calculated a much larger penalty, the fine was reduced because the company could not afford to pay more. Paxful shut down in October 2025.
Key takeaway: This case shows that crypto platforms that ignore compliance and AML regulations face serious legal consequences. Regulation and enforcement in crypto are not going away — compliance matters more than ever.
#P2P #currentupdate #dyor