US DOJ indicts Paxful co-founder for AML violations

The U.S. Department of Justice has indicted Ray Youssef, co-founder of peer-to-peer crypto exchange Paxful, on charges of violating anti-money laundering and licensing requirements. According to BeInCrypto, prosecutors allege that Paxful facilitated transactions linked to illegal activities, particularly payments related to a sex trafficking advertising platform. The indictment also claims the exchange lacked proper Know Your Customer (KYC) procedures, a substantial internal compliance control system, and failed to file Suspicious Activity Reports (SARs) in a timely manner. Youssef has denied the allegations, countering that the action is an escalation of the war on crypto. Meanwhile, Paxful recently pleaded guilty to three charges related to Backpage and agreed to a $4 million fine.