According to Odaily, Artur Schaback, the co-founder and former Chief Technology Officer of Paxful, has pleaded guilty to failing to maintain an effective anti-money laundering (AML) program at the cryptocurrency exchange. As a result, he could face up to five years in prison. The U.S. Department of Justice announced on July 8th that Schaback is scheduled to be sentenced on November 4th and will resign from the Paxful board of directors.
In a plea agreement submitted to a California district court on the same day, it was revealed that government prosecutors have agreed to fine Schaback $5 million. He will repay this fine in three installments: $1 million on the day of the guilty plea, $3 million on the day of sentencing, and the remaining $1 million over the next two years.