RegAlert2025-12-09 | 2025-02Added · Updated
Consent Order Imposing Civil Money Penalty on Paxful, Inc. and Paxful USA, Inc.
FinCEN imposes a civil money penalty on Paxful, Inc. and Paxful USA, Inc. for willful violations of the Bank Secrecy Act, including operating as an unregistered money services business, failing to maintain an effective anti-money laundering program, and neglecting suspicious activity reporting obligations. The order details specific failures such as the absence of Know Your Customer controls prior to 2019, inadequate transaction monitoring for cryptocurrencies and prepaid access cards, and the exploitation of the platform by illicit actors from sanctioned jurisdictions. Paxful admits to these violations and consents to the issuance of the order and the associated penalty.
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UNITED STATES OF AMERICA
FINANCIAL CRIMES ENFORCEMENT NETWORK
DEPARTMENT OF THE TREASURY
IN THE MATTER OF: )
) Number 2025-02
Paxful, Inc. and )
Paxful USA, Inc. )
)
CONSENT ORDER IMPOSING CIVIL MONEY PENALTY
The Financial Crimes Enforcement Network (FinCEN) conducted a civil enforcement investigation and determined grounds exist to impose a Civil Money Penalty against Paxful, Inc. and Paxful, USA Inc. (collectively, Paxful or the Company)1 for violations of the Bank Secrecy Act (BSA) and its implementing regulations. 2 Paxful admits to the Statement of Facts and Violations set forth below, consents to the issuance of this Consent Order, agrees to pay the civil money penalty imposed in this Consent Order, and agrees to comply with the provisions of this Consent Order.
I. JURISDICTION
Overall authority for enforcement and compliance with the BSA lies with the Director of FinCEN, and the Director of FinCEN may impose civil penalties for violations of the BSA and its implementing regulations.3 1 Unless otherwise indicated, all references to Paxful or the Company prior to 2019 are to Paxful, Inc. Thereafter, all references to Paxful or the Company are to both Paxful, Inc. and Paxful USA, Inc., unless otherwise indicated. 2 The BSA is codified at 12 U.S.C. §§ 1829b, 1951-1960, 31 U.S.C. §§ 5311-5314, 5316-5336 and includes other authorities reflected in notes thereto. Regulations implementing the BSA appear at 31 C.F.R. Chapter X. 3 31 U.S.C. § 5321(a); 31 C.F.R. § 1010.810(a), (d); Treasury Order 180-01 (July 1, 2014, reaff’d Jan. 14, 2020).
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Source: Financial Crimes Enforcement Network — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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