#News# Paxful co-founder and former technical director Artur Schaback faces up to five years in prison and a $5 million fine for failing to implement an effective anti-money laundering (AML) and "know your customer" (KYC) program on the cryptocurrency exchange. The U.S. Department of Justice said Schaback is scheduled to be sentenced on November 4 and will resign from the Paxful board of directors. According to prosecutors' documents, Schaback and an accomplice allowed users to open Paxful accounts and conduct transactions without providing sufficient identity information or documents, causing Paxful to become a tool for money laundering, sanctions violations and other criminal activities. Schaback will repay the fine in three installments, with an initial payment of $1 million, $3 million upon sentencing, and the final $1 million to be paid over the next two years.