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<a href="https://bitcoinworld.co.in/paxful-co-founder-faces-prison-for-failing-to-implement-aml-protocols/" title="Paxful Co-Founder Faces Prison For Failing to Implement AML Protocols" rel="nofollow"></a>
Artur Schaback, co-founder and former CTO of Paxful, faces up to five years in prison after admitting to failing to implement essential Anti-Money Laundering (AML) protocols at the cryptocurrency exchange. 
The US Justice Department <a href="https://www.justice.gov/opa/pr/paxful-inc-co-founder-pleads-guilty-conspiracy-fail-maintain-effective-anti-money-laundering">revealed</a> that Schaback’s sentencing is set for November 4, following his guilty plea on July 8. 
Schaback’s plea deal includes a $5 million fine, payable in three installments: $1 million immediately, $3 million by the sentencing date, and the final $1 million over the next two years. He will also step down from Paxful’s board. 
Prosecutors indicated that Schaback, along with Paxful’s then-CEO, neglected to establish a required AML program within the initial 90 days of the business’s operation, as mandated by the Bank Secrecy Act. They also failed to create a Know Your Customer (KYC) process to verify users’ identities. 
This oversight allowed Paxful to be used for money laundering and other illegal activities between July 2015 and June 2019.&nbsp; 
Schaback and his partner permitted trading on the platform without adequate user verification and falsely advertised Paxful as not requiring KYC.

Paxful Co-Founder Faces Prison For Failing to Implement AML Protocols

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