Summary
- The U.S. Department of Justice said it has indicted Ray Youssef, co-founder of P2P virtual asset (cryptocurrency) exchange Paxful, on charges of violating anti-money laundering (AML) and licensing requirements.
- Prosecutors said Paxful facilitated transactions tied to illegal activity, including payments related to a prostitution advertising platform, and cited inadequate know-your-customer (KYC) measures, weak internal compliance monitoring, and delayed filing of suspicious activity reports (SARs).
- In a separate case, Paxful pleaded guilty to three charges and agreed to a $4 million fine, while Youssef said the move represents increased pressure on the virtual asset industry.
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The U.S. Department of Justice has indicted Ray Youssef, co-founder of the P2P virtual asset (cryptocurrency) exchange Paxful, on charges of violating anti-money laundering (AML) and licensing requirements.
According to virtual asset media outlet BeInCrypto on the 2nd (local time), prosecutors alleged that Paxful facilitated transactions linked to illegal activity. They took issue in particular with its use for payments tied to a prostitution advertising platform.
They also said Paxful lacked adequate know-your-customer (KYC) procedures and an effective internal compliance monitoring system, and failed to file suspicious activity reports (SARs) in a timely manner.
Youssef denied the allegations, arguing that the action amounts to escalating pressure on the virtual asset industry.
Meanwhile, Paxful recently pleaded guilty to three charges in a separate case and agreed to a $4 million fine.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
