Paxful Co-founder Could Be Sentenced to 5 Years in Jail

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Artur Schaback, co-founder and former tech chief of Paxful, has pleaded guilty to conspiring to fail to maintain an effective Anti-Money Laundering program at the crypto exchange.

He could face up to five years in jail and is scheduled to be sentenced on November 4, after which he will resign from Paxful’s board.

Under the terms of his plea agreement, Schaback will pay a $5 million fine in three installments, with the final payment due within two years.

The charges against him state that, along with the exchange’s CEO, he failed to establish an effective AML program within 90 days of starting the business, as required by the Bank Secrecy Act.