Paxful co-founder faces up to five years in prison for failing to effectively implement anti-money laundering program

BlockBeats news, July 9, according to Cointelegraph, Paxful co-founder and former technical CEO Artur Schaback pleaded guilty on Monday for failing to maintain an effective anti-money laundering (AML) program at the cryptocurrency exchange, and will face up to five years in prison.

On July 8, the U.S. Department of Justice said that Schaback is scheduled to be sentenced on November 4 and he will resign from the Paxful board of directors. A plea agreement filed in the California District Court on the same day showed that government prosecutors agreed to fine Schaback $5 million, which he will repay in three installments, $1 million on the date of his guilty plea, $3 million on the date of sentencing, and the last $1 million in the next two years.