Paxful

2015-07-01

Paxful founded by Ray Youssef and Artur Schaback as a peer-to-peer Bitcoin marketplace; begins operating without a registered Money Services Business license, AML program, or KYC requirements.

2015-12-01

Paxful begins knowingly processing Bitcoin payments on behalf of Backpage.com, an illegal prostitution advertising platform, according to DOJ court documents.

2016-09-01

Co-founders Ray Youssef and Artur Schaback are arrested in Miami Beach following an incident involving an AR-15 rifle and drug possession (cocaine and hashish). Charges are later dismissed.

2017-02-01

Ray Youssef is arrested in Tallinn, Estonia on suspicion of drug trafficking, allegedly for procuring MDMA and steroids via darknet markets.

2018-04-01

DOJ seizes Backpage.com. Despite the seizure, Paxful allegedly continues processing payments to a Backpage copycat site for approximately four more years.

2018-11-01

Paxful designates its first compliance officer — approximately three years after beginning operations.

2019-07-01

Paxful implements its first written AML program — four years after founding.

2019-11-01

Paxful files its first Suspicious Activity Report (SAR) with FinCEN — more than four years after commencing operations.

2021-10-01

Artur Schaback takes paternity leave; upon returning finds his access to company systems and credit card revoked, and his COO title removed by Youssef. Beginning of documented co-founder conflict.

2023-01-01

Artur Schaback files suit against Ray Youssef and Paxful alleging wrongful termination, misappropriation of funds, money laundering, and alleged sanctions-evasion planning regarding Russia.

2023-04-01

Paxful temporarily suspends marketplace operations amid co-founder dispute and concerns about customer fund safety; a Delaware Chancery Court appoints a custodian.

2023-05-08

Paxful relaunches under new CEO Roshan Dharia after board structure is resolved.

2024-07-08

Artur Schaback pleads guilty in U.S. District Court, California, to conspiracy to fail to maintain an effective AML program. Agrees to pay $5 million in fines and cooperate with ongoing investigation. Faces maximum of five years in prison.

2025-11-01

Paxful ceases all operations by November 1, 2025, citing lasting impact of former co-founders' misconduct and unsustainable compliance remediation costs.

2025-12-09

Paxful Holdings, Inc. pleads guilty in U.S. District Court, Eastern District of California to three federal conspiracy charges: Travel Act violations, operating an unlicensed MTB, and BSA AML violations. FinCEN concurrently issues $3.5 million civil consent order.

2025-12-13

Ray Youssef indicted in U.S. District Court, Eastern District of California, on charges of willfully failing to maintain an effective AML program, willfully failing to file SARs, and operating an unlicensed money transmitting business. Youssef is arrested and briefly detained in Santa Ana before being released under supervision.

2026-02-10

Paxful Holdings, Inc. is formally sentenced by the U.S. District Court, Eastern District of California to pay a $4 million criminal penalty.

2026-02-01

Ray Youssef departs as CEO of NoOnes, a separate P2P crypto platform he founded after leaving Paxful. NoOnes states his legal matters are personal and unrelated to the company.