Paxful Announces Formal Conclusion of its DOJ and FinCEN Matters
Paxful Announces Formal Conclusion of its DOJ and FinCEN Matters
On February 10, 2026, the U.S. District Court for the Eastern District of California formally sentenced Paxful in connection with its December 2025 guilty plea to federal criminal charges, related to historic conduct that occurred prior to 2023 under former leadership. The Court imposed a $4 million criminal fine and a 2-year period of probation. Paxful previously disclosed its agreement to pay a $3.5 million civil penalty to the Financial Crimes Enforcement Network (FinCEN).
As previously announced on December 11, 2025, Paxful entered into agreements with the DOJ and FinCEN to resolve long-standing investigations stemming from serious criminal misconduct by the company's former co-founders prior to 2023. These unlawful actions involved deliberate deficiencies in anti-money-laundering and compliance programs, as well as the facilitation of illegal commercial transactions. The former co-founders directed employees to assist users in circumventing legal restrictions, including providing tools and guidance that enabled these unlawful activities. Paxful's current leadership unequivocally condemns these actions, which were entirely inconsistent with the company's values and ethical standards under subsequent ownership. Throughout the investigative process, Paxful fully cooperated with U.S. authorities to ensure these matters were brought to a complete and formal resolution.
Paxful announced its decision to wind down its operations on October 01, 2025 and is no longer conducting business. While the company has ceased operations, it remains fully committed to the safe and timely return of any remaining user funds.
About Paxful
Paxful, once the world's largest people-powered marketplace, connected over 14 million users across 140+ countries, enabling them to move, earn, save, and store money since its founding in 2015. As a pioneering borderless peer-to-peer payment network, Paxful offered access to the global economy through cryptocurrencies, supporting over 400 payment methods for buying and selling Bitcoin, USDT, and other digital and local currencies.
For inquiries related to this announcement please contact: legal@paxful.com
Law Firm
Esseks Ingoglia
350 5th Avenue
The Empire State Building
New York, NY 10118
contact@esseksingoglia.com
212-358-4343
FinCEN: Enforcement Action Number 2025-02
DOJ: United States v. Paxful Holdings, Inc., 2:25-cr-00235, (E.D. Cal.).
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