Paxful pleads guilty to AML violations, facilitating illicit activity

P2P cryptocurrency exchange Paxful has pleaded guilty to three criminal charges for facilitating illegal activities, including sex trafficking, fraud, and sanctions violations, CoinDesk reported. The U.S. Department of Justice stated that Paxful processed $3 billion in cryptocurrency transactions while evading anti-money laundering regulations and providing services to high-risk users. Prosecutors reduced the fine to $4 million after assessing the company's financial condition. A sentencing hearing is scheduled for February 2026.