Bitcoin exchange Paxful agrees to plead guilty and is fined $7.5 million

According to Decrypt, Bitcoin P2P market operator Paxful Holdings Inc. has agreed to plead guilty to federal charges in the United States and will pay a $4 million criminal fine to the U.S. Department of Justice. Additionally, the Financial Crimes Enforcement Network imposed a $3.5 million civil fine on the company on Tuesday. Paxful had previously shut down in 2023.

According to the U.S. Department of Justice, from 2017 to 2019, the company facilitated approximately $3 billion in transactions, generating over $29 million in revenue, while willfully providing assistance for criminal activities. Despite being aware of criminal behavior on the platform, Paxful failed to submit the required suspicious activity reports and misrepresented its anti-money laundering policies to third parties. Sentencing is scheduled for February 10, 2026.