DOJ Indicts Paxful Founder Days After Company Pleads Guilty to Money Laundering Charges
The DOJ indicted Paxful founder Ray Youssef for operating the platform without proper licensing and AML controls, shortly after Paxful pleaded guilty to related charges.Summary
The US Department of Justice (DOJ) indicted Paxful co-founder and former CEO Ray Youssef, alleging his peer-to-peer crypto marketplace operated without proper licensing and failed to implement effective anti-money laundering (AML) controls. Prosecutors claim Paxful facilitated transactions linked to unlawful activities, including payments for commercial sex advertising platforms like Backpage, citing evidence from undercover agents. This indictment followed Paxful's guilty plea days earlier to three federal criminal charges, including conspiracy to promote illegal prostitution and operating as an unlicensed money transfer business, resulting in a $4 million fine. Youssef has publicly rejected the charges as "bogus," claiming the case is part of a "war on crypto," and stated he was arrested in Mexico and deported to the US, where he is currently under supervision.
(Source：BeInCrypto)