The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) has levied a $3.5 million fine on Paxful for violations of the Bank Secrecy Act (BSA). The penalty is linked to Paxful's processing of over $500 million in suspicious cryptocurrency transactions without proper anti-money laundering (AML) measures. Key failures included not registering as a money services business and neglecting to file Suspicious Activity Reports. Paxful, which had already ceased operations due to regulatory challenges, faces this fine amid heightened scrutiny of cryptocurrency platforms. The enforcement action underscores the increasing regulatory focus on ensuring compliance with financial laws in the crypto sector.