Arthur Shabak, co-founder of Paxful, Facing Prison Time for AML Violations
Arthur Shabak, the co-founder and former CTO of the cryptocurrency exchange Paxful, has pleaded guilty to charges of conspiracy to sabotage an anti-money laundering program. Shabak now faces the threat of five years in prison and a hefty fine of $5 million.
The US prosecutor’s office brought charges against Shabak in late March, alleging that he and his partner failed to establish an effective AML program within the required timeframe. This failure to comply with regulations allowed the platform to be used for a variety of criminal activities, including money laundering, sanctions violations, and fraud.
Shabak’s sentencing will be announced on November 4, 2024. If convicted, he could face significant financial penalties and a lengthy prison term. This case underscores the importance of adhering to anti-money laundering requirements and financial regulations to prevent criminal activities on cryptocurrency platforms.
