Summary
- The U.S. Department of Justice (DOJ) said it imposed a $4 million fine on crypto platform Paxful, which was linked to cases involving illegal sex trafficking and money laundering.
- Paxful said it pleaded guilty to three criminal charges alleging it aided illegal activities such as sex trafficking, fraud and sanctions violations, and agreed to a $4 million fine.
- The action was described as showing U.S. authorities are continuing to tighten crypto platforms’ anti-money-laundering obligations and responsibility to prevent illegal activity.
The U.S. Department of Justice (DOJ) has imposed a $4 million fine on Paxful, a virtual asset (cryptocurrency) platform implicated in cases involving illegal sex trafficking and money laundering.
According to crypto-focused outlet CoinDesk on the 11th (local time), Paxful pleaded guilty to three criminal charges alleging it aided illegal activities including sex trafficking, fraud and sanctions violations. The DOJ reportedly reached a settlement to levy a $4 million fine.
Prosecutors concluded that Paxful failed to adequately control illicit transactions conducted through its platform and did not sufficiently fulfill its anti-money-laundering obligations. They also flagged transactions involving sanctioned parties that were carried out via the platform.
The move underscores that U.S. authorities are maintaining their push to tighten crypto platforms’ responsibility to prevent money laundering and other illegal conduct.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
![Selling pressure despite a 'surprise jobs report'… the three major indexes end slightly lower [New York Stock Market Briefing]](https://media.bloomingbit.io/PROD/news/71d04eea-1cc0-4ced-a1e2-c695c8d95cac.webp?w=250)
