Odaily Planet Daily reports that the U.S. Department of Justice announced that the cryptocurrency trading platform Paxful Holdings Inc. has been fined $4 million for failing to establish effective anti-money laundering controls. Prosecutors accused the platform of allowing illegal funds related to scams, prostitution, and human trafficking to flow through the platform over an extended period, profiting from it.
The Department of Justice stated that Paxful was aware that some customer funds involved criminal activities but continued to provide services, using lax anti-money laundering regulations as a selling point to attract users. The investigation also revealed that the platform processed cryptocurrency transactions for websites including Backpage, which was believed to be used for posting prostitution-related ads involving minors.
Data shows that between 2015 and 2022, approximately $17 million worth of Bitcoin was transferred to related websites through Paxful wallets, with the platform earning at least $2.7 million in profit. The Department of Justice said that Paxful’s founder even referred to the business growth resulting from this as the “Backpage effect.”
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Famed trader “Maji” ends 13 straight wins, closing a Bitcoin long position at a loss of $192k
Gate News, April 12. Lookonchain monitoring shows that the well-known trader “Maji” saw their 13-win streak come to an end. Due to the market downturn, they just closed a Bitcoin long position, incurring a loss of about $192k.
GateNews1h ago
BTC 15-minute drop of 1.75%: Derivatives liquidity deterioration and capital withdrawals in sync weigh on prices
From 01:30 to 01:45 (UTC) on 2026-04-12, the BTC price saw significant volatility within the 71,560.0–73,017.1 USDT range. The candlestick return rate recorded -1.75%, and the amplitude reached 2.00%. During this period, market attention increased, the trading atmosphere clearly became more cautious, and heightened volatility triggered short-term capital vigilance.
The primary driving force behind this unusual move is the continued deterioration of liquidity in the derivatives market: CME futures open interest fell to a 14-month low, and institutional arbitrage capital accelerated its withdrawal. Futures trading volume trended lower over the long run, and arbitrage basis compression caused the market to deepen in…
GateNews2h ago
Morgan Stanley is considering launching tokenized money market funds, exploring crypto asset tax and lending services
Morgan Stanley’s head of digital asset strategy, Amy Oldenburg, said the firm will treat tokenized money market funds as a future direction, while also considering tax-loss harvesting services and Bitcoin-related products. The firm has filed ETF applications for Ethereum and Solana, and manages $9.3 trillion in client assets.
GateNews2h ago
Bitcoin ETFs Acquire 3,350 BTC in $240M Inflow
Spot ETFs tied to Bitcoin saw a significant inflow of $240 million, indicating strong institutional demand and reflecting a trend of consistent accumulation. With over 721,000 BTC held by ETFs, supply pressure is rising, fundamentally supporting Bitcoin's integration into traditional finance.
Coinfomania2h ago
Bitcoin dips below $72,000, down 0.92% over the past 24 hours
Gate News message: On April 12, market data showed that Bitcoin fell below $72,000, with a 24-hour drop of 0.92%.
GateNews2h ago
BTC 跌破 72000 USDT
Gate News bot 消息，Gate 行情显示，BTC 跌破 72000 USDT，现价 71993.6 USDT。
CryptoRadar2h ago
