The U.S. Department of Justice has indicted Ray Youssef, founder of the peer-to-peer crypto marketplace Paxful, on charges related to money laundering and operating without proper licensing. The indictment, filed in the U.S. District Court for the Eastern District of California, alleges that Paxful failed to implement effective anti-money laundering (AML) controls and facilitated transactions linked to illegal activities, including commercial sex advertising platforms. Youssef has publicly denied the charges, describing them as part of a broader "war on crypto." The indictment follows Paxful's recent guilty plea to federal charges, admitting to promoting illegal prostitution through interstate commerce and operating as an unlicensed money transfer business. The company agreed to pay a $4 million fine, significantly reduced from federal guidelines due to its financial condition. Youssef, who was deported from Mexico and arrested in Los Angeles, remains under supervision in the U.S. as the case proceeds.