Paxful co-founder pleads guilty to failing to effectively implement anti-money laundering programs, facing up to five years in prison and a $5 million fine

ChainCatcher news, Paxful co-founder and former Chief Technology Officer Artur Schaback pleaded guilty on Monday to failing to maintain an effective anti-money laundering (AML) program at the cryptocurrency exchange, and now faces up to five years in prison.

On July 8, the U.S. Department of Justice announced that Schaback is scheduled to be sentenced on November 4, and he will resign from the Paxful board.

A plea agreement submitted the same day in a California federal court shows that government prosecutors agreed to impose a $5 million fine on Schaback, which he will pay in three installments: $1 million on the day of the plea, $3 million on the day of sentencing, and the final $1 million to be paid within the next two years.