Paxful Agrees to Plead Guilty to U.S. Federal Charges and Pay Fines

According to PANews, Paxful Holdings Inc., a Bitcoin peer-to-peer marketplace operator, 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 ceased operations in 2023. The U.S. Department of Justice reported that between 2017 and 2019, Paxful facilitated approximately $3 billion in transactions, generating over $29 million in revenue. Despite being aware of criminal activities on its platform, the company failed to file the required suspicious activity reports and misrepresented its anti-money laundering policies to third parties. The sentencing is scheduled for February 10, 2026.