Paxful / Ray Youssef

2015-01-01

Ray Youssef and Artur Schaback co-found Paxful, a peer-to-peer Bitcoin trading platform based in New York.

2017-07-01

Primary violation period begins (July 2015 cited by DOJ; 2017 cited as start of primary facilitation period covering $3 billion in trades). Paxful operating without KYC, fake AML policies in place, no SARs filed.

2017-10-01

FinCEN documents Paxful processing trades on behalf of Lazarus Group member Yinyin Tian (North Korean state-linked actor) beginning approximately October 2017, continuing through November 2018.

2018-04-06

DOJ seizes Backpage.com for facilitating prostitution and sex trafficking. Paxful had processed approximately $17 million in Bitcoin to Backpage and copycat sites, earning at least $2.7 million in fees from this activity.

2019-01-01

Paxful processes transactions associated with a fundraising campaign for al-Qaeda, per FinCEN enforcement findings.

2019-06-01

Primary criminal violation period ends (per DOJ criminal information covering July 2015 to June 2019 or January 2017 to September 2019 depending on count).

2019-11-01

Paxful files its first-ever Suspicious Activity Report (SAR), more than four years after founding and after the primary violation period had ended.

2023-04-01

Paxful temporarily shuts down amid a public dispute between co-founders and internal leadership challenges.

2023-05-01

Paxful resumes operations under new management after assembling a board of directors.

2024-07-08

Artur Schaback, Paxful co-founder and former CTO, pleads guilty to conspiracy to fail to maintain an effective AML program in violation of the Bank Secrecy Act. Faces maximum five-year prison sentence. Resigns from Paxful board.

2025-10-09

Paxful announces complete wind-down of operations effective November 1, 2025, citing 'lasting impact of historic misconduct by former co-founders' and unsustainable compliance remediation costs.

2025-11-01

Paxful officially ceases all operations.

2025-12-09

Paxful Holdings Inc. pleads guilty to three federal criminal counts. FinCEN simultaneously assesses $3.5 million civil money penalty. Sentencing set for February 10, 2026.

2026-02-10

Paxful sentenced to $4 million criminal fine. DOJ confirms full penalty of $112.5 million was warranted but reduced due to demonstrated inability to pay. Total combined DOJ and FinCEN penalty is $7.5 million.

2026-02-13

DOJ indicts Ray Youssef on federal charges of conspiracy to evade AML requirements, operating an unlicensed money transmitter, and facilitating illegal prostitution-related activities. Youssef is deported from Mexico to Los Angeles and arraigned; released under supervision with travel restrictions.

2026-02-20

NoOnes announces that Ray Youssef has stepped down as CEO. No successor named. NoOnes states his legal matters are personal and unrelated to the company.