Artur Schaback, one of the co-founders of crypto exchange Paxful, has agreed to a plea deal with U.S. prosecutors that could see him locked up for five years.
Paxful co-founder and former tech chief Artur Schaback is facing a maximum of five years in jail after pleading guilty on Monday to conspiring to fail to maintain an effective Anti-Money Laundering (AML) program at the crypto exchange.
The United States Justice Department said on July 8 that Schaback, the exchange’s former chief technology officer, was scheduled to be sentenced on Nov. 4 and would resign from Paxful’s board.
A plea agreement filed the same day in a California District Court shows government prosecutors agreed to pitch a $5 million fine, which Schaback would pay back in three installments — $1 million by the date of his guilty plea, $3 million by his sentencing and the final $1 million within the next two years.
