Paxful Resolves DOJ Investigation Over Historic Conduct Under Former Leadership
Paxful has reached agreements with the U.S. Department of Justice (DOJ) and FinCEN, resolving investigations into pre-2023 conduct by its former co-founders. The peer-to-peer crypto platform pleaded guilty for actions under prior management, with sentencing scheduled for February 2026.
The company sharply criticized its past compliance failures, calling them incompatible with current ownership's standards. Paxful's cooperation during probes ultimately led to this resolution, which validates its recent decision to wind down operations.
For non-U.S. entities like Paxful, the compounding effects of legacy issues and mounting compliance demands created unsustainable operational challenges. While no longer active, the platform maintains its obligation to return remaining user funds.
