Regulatory Alerts2025-12-09 | 2025-02Added
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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