Paxful co-founder and former CTO Arthur Shabak pleaded guilty to conspiracy to under-implement an anti-money laundering (AML) program. 🏛️ He could get up to 5 years in prison. Shabak must resign from Paxful's board of directors and pay a $5 million fine in three installments.

The allegations include lack of an effective AML program and Know Your Customer (KYC) program within 90 days of launching the business. This has led to Paxful being used for money laundering and other criminal activities.

Shabak sued his co-founder and former Paxful CEO Mohamad (Ray) Youssef in March 2023, leading to a dispute over control of the exchange.