Paxful co-founder Artur Schaback has reached a plea deal with US prosecutors and could face up to five years in prison

Paxful co-founder and former head of technology Artur Schaback pleaded guilty Monday to conspiring to fail to maintain an effective anti-money laundering (AML) program at a cryptocurrency exchange and faces up to five years in prison. Schaback, the exchange's former chief technology officer, is scheduled to be sentenced Nov. 4 and will resign from Paxful's board of directors, the Department of Justice said July 8. A plea agreement filed in California District Court the same day shows that government prosecutors agreed to fine Schaback $5 million, which will be repaid in three installments $1 million on the date of his guilty plea, $3 million before he is sentenced, and the final $1 million over the next two years.