Paxful co-founder Artur Schaback has pleaded guilty to failing to maintain an effective Anti-Money Laundering (AML) program at the crypto exchange. The former tech chief faces up to five years in jail and is due to be sentenced on Nov. 4. As part of a plea agreement, Schaback will pay a $5 million fine in three installments. Prosecutors claim Schaback failed to establish an AML program within 90 days of starting the business, as required under the Bank Secrecy Act, and did not implement a Know Your Customer (KYC) program. This led to Paxful being used for money laundering and other criminal activities.