Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Policy
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
U.S. DOJ hits Paxful for $4 million in case t
Policy
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
U.S. DOJ hits Paxful for $4 million in case t
U.S. DOJ hits Paxful for $4 million in case tied to illegal sex work, money laundering
U.S. DOJ hits Paxful for $4 million in case tied to illegal sex work, money laundering
The crypto platform's penalty was sharply reduced due to its ability to pay, according to U.S. authorities.
By Jesse Hamilton|Edited by Stephen Alpher
Feb 11, 2026, 6:52 p.m.
Make us preferred on Google
The former crypto platform Paxful was sentenced in its criminal case. (Jesse Hamilton/CoinDesk)
What to know:
- The U.S. Department of Justice won a $4 million penalty from former crypto platform Paxful in a sentence tied to the dodging of money-laundering laws.
- The amount was reduced from an original amount of $112 million by prosecutors after determining the business couldn't pay that much, the DOJ said.
Paxful Holdings, which pleaded guilty last year to accusations from U.S. authorities that it had fostered illegal prostitution, violated money-laundering laws and knowingly handled criminal proceeds, was sentenced to pay a $4 million penalty, much reduced because of the business’ current ability to pay.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the State of Crypto Newsletter today. See all newsletters
Sign me up
The peer-to-peer bitcoin BTC$67,745.59 marketplace that had been popular in Africa shut down in 2023, but Paxful had processed as much as $3 billion in crypto trades from 2017 to 2019, according to U.S. authorities, including transactions for customer Backpage, an advertising platform for illicit sex work.
"This sentence sends a clear message: companies that turn a blind eye to criminal activity on their platforms will face serious consequences under U.S. law," said U.S. Attorney Eric Grant for the Eastern District of California, in a statement.
On the Paxful platform, customers negotiated trades of digital assets for other items, such as cash, prepaid cards and gift cards. The founders were said to have marketed the site as a way around the Bank Secrecy Act's anti-money-laundering constraints.
Prosecutors originally contemplated a penalty of more than $112 million, but the firm was determined to be able to pay no more than $4 million.
Read More: Paxful’s Fall: Questions in the Peer-to-Peer Bitcoin Exchange’s Demise
PaxfulU.S. Department of Justicecriminal activityMoney Laundering
More For You
SEC's Paul Atkins grilled on crypto enforcement pull-back, including with Justin Sun, Tron
The U.S. agency's chairman said in a House hearing that he's open to a confidential briefing for lawmakers on the topic.
What to know:
- U.S. Securities and Exchange Commission Chairman Paul Atkins told a senior Democratic lawmaker that he can't talk about the paused enforcement case against Justin Sun and his Tron Foundation, but he agreed he'd consider a confidential briefing for lawmakers.
- While Democrats targeted the SEC's crypto enforcement stance in an oversight hearing of the House Financial Services Committee, Republicans focused on Atkins' intentions to offer crypto regulations.
- Atkins said he's pushing forward on rules that will closely align the agency with the Clarity Act on crypto market structure, even as that bill's outcome in the Senate remains unclear.
Read full story
Latest Crypto News
BlackRock exec says 1% crypto allocation in Asia could unlock $2 trillion in new flows
Hong Kong remains committed to digital assets but feels competition from an ‘aggressive’ UAE
Gen Z 'nihilism' is fueling a $100 trillion crypto derivatives boom in response to a broken system
Ondo and Securitize execs say utility, not hype, will drive tokenization’s next phase
SEC's Paul Atkins grilled on crypto enforcement pull-back, including with Justin Sun, Tron
JPMorgan bullish on crypto for rest of year as institutional flows set to drive recovery
Top Stories
Cryptos crumble, bitcoin falls through $66,000, as Friday's bounce fades
Institutional crypto platform BlockFills reportedly halts withdrawals, restricts trading
Why crypto VCs at Consensus Hong Kong are playing a 15-year game
Analysts react as Robinhood slumps 10%, with slowdown in crypto trading weighing on results
U.S. added stronger than expected 130,000 jobs in January, with unemployment rate falling to 4.3%
BlackRock takes first DeFi step, lists BUIDL on Uniswap as UNI jumps 25%
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
You May Also Like
Ethereum unveils roadmap focusing on scaling, interoperability, and security at Japan Dev Conference
The post Ethereum unveils roadmap focusing on scaling, interoperability, and security at Japan Dev Conference appeared on BitcoinEthereumNews.com. Key Takeaways Ethereum’s new roadmap was presented by Vitalik Buterin at the Japan Dev Conference. Short-term priorities include Layer 1 scaling and raising gas limits to enhance transaction throughput. Vitalik Buterin presented Ethereum’s development roadmap at the Japan Dev Conference today, outlining the blockchain platform’s priorities across multiple timeframes. The short-term goals focus on scaling solutions and increasing Layer 1 gas limits to improve transaction capacity. Mid-term objectives target enhanced cross-Layer 2 interoperability and faster network responsiveness to create a more seamless user experience across different scaling solutions. The long-term vision emphasizes building a secure, simple, quantum-resistant, and formally verified minimalist Ethereum network. This approach aims to future-proof the platform against emerging technological threats while maintaining its core functionality. The roadmap presentation comes as Ethereum continues to compete with other blockchain platforms for market share in the smart contract and decentralized application space. Source: https://cryptobriefing.com/ethereum-roadmap-scaling-interoperability-security-japan/
Share
BitcoinEthereumNews2025/09/18 00:25
U.S. Moves Grip on Crypto Regulation Intensifies
The post U.S. Moves Grip on Crypto Regulation Intensifies appeared on BitcoinEthereumNews.com. The United States is contending with the intricacies of cryptocurrency regulation as newly enacted legislation stirs debate over centralized versus decentralized finance. The recent passage of the GENIUS Act under Bo Hines’ leadership is perceived to skew favor towards centralized entities, potentially disadvantaging decentralized innovations. Continue Reading:U.S. Moves Grip on Crypto Regulation Intensifies Source: https://en.bitcoinhaber.net/u-s-moves-grip-on-crypto-regulation-intensifies
Share
BitcoinEthereumNews2025/09/18 01:09
Shiba Inu Price Forecast: Why This New Trending Meme Coin Is Being Dubbed The New PEPE After Record Presale
While Shiba Inu (SHIB) continues to build its ecosystem and PEPE holds onto its viral roots, a new contender, Layer […] The post Shiba Inu Price Forecast: Why This New Trending Meme Coin Is Being Dubbed The New PEPE After Record Presale appeared first on Coindoo.
Share
Coindoo2025/09/18 01:13