The P2P platform Paxful, the Department of Justice (DOJ), and the Financial Crimes Enforcement Network (FinCEN) have agreed to resolve the investigation into Paxful. The platform has pleaded guilty to historic conduct occurring prior to 2023 under the leadership of its former co-founders. According to the official statement, the court has set February 10, 2026, as the date for sentencing, effectively closing a critical legal chapter for the entity.
This agreement sustains Paxful’s decision to definitively cease its global operations. Current leadership noted that the repercussions of the original founders’ actions, coupled with extreme compliance demands for a non-U.S.-based entity, made the path forward untenable. The impact of this resolution underscores the regulatory pressure on “peer-to-peer” markets and marks the end of one of the platforms that once connected over 14 million users.
The next step will be the sentencing process in February, while Paxful ensures it will remain operational only to facilitate the safe and timely return of remaining funds to its users. The sector will closely monitor how this precedent affects other international P2P markets, reinforcing the need for unwavering transparency and ethical standards in the new digital economy.
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