Cryptohack Roundup: Paxful's $4M Penalty

Also: Coinbase's Agentic AI Wallets, $1M Fraud Indictment Rashmi Ramesh (rashmiramesh_) • February 19, 2026

Every week, Information Security Media Group rounds up cybersecurity incidents in digital assets. This week, Paxful's $4M AML penalty, Coinbase's agentic AI wallets, a $1M fraud indictment, a 20-year $200M Ponzi sentence, laundering from the $200M Mixin hack, a Binance France home invasion attempt, insider betting charges in Israel and lost seized bitcoin in South Korea.

See Also: Revolutionizing Cross-Border Transactions with Permissioned DeFi

The U.S. Department of Justice ordered crypto platform Paxful Holdings to pay a $4 million criminal penalty after prosecutors found it failed to implement anti-money laundering controls and enabled illicit transactions. Authorities said Paxful knowingly processed funds linked to fraud, extortion, prostitution and sex trafficking, including transactions involving Backpage, a website used to advertise prostitution, including minors.

Between 2015 and 2022, Paxful transferred roughly $17 million ...