Paxful Hit with $4M Fine by US for Trafficking-Linked Funds

Paxful faces a $4 million fine from US authorities for allegedly facilitating trafficking and fraud through lax anti-money laundering practices.

US authorities have imposed a substantial fine of $4 million on Paxful, a cryptocurrency exchange, for reportedly facilitating the movement of funds associated with trafficking and fraud. Prosecutors highlighted that Paxful positioned itself as a platform that does not require Know Your Customer (KYC) procedures and acknowledged that its anti-money laundering policies were neither enforced nor put into actual practice.