Paxful co-founder Artur Schaback was found guilty of operating a cryptocurrency exchange without an effective anti-money laundering policy. Schaback potentially faces up to five years in prison for this crime.

This could be a sign that cryptocurrency exchanges will be subject to tighter regulation around the world. This may negatively affect the overall growth trend of the sector.

Stricter regulation of cryptocurrency exchanges could undermine investor confidence and reduce demand for cryptocurrencies. This could lead to a decline in cryptocurrency markets in general.

As a result, Schaback's conviction and potential prison sentence could be seen as a negative development for the cryptocurrency industry. This may negatively affect the future growth prospects of the sector.