![\"Paxful's](\"https:\/\/www.complycube.com\/wp-content\/uploads\/2026\/02\/header-1-1024x577.png\")
<\/figure>\n\n\n\nAccording to court documents, Paxful\u2019s founder and co-founder knew that its customers transferred funds from criminal activities such as fraud and prostitution. On one occasion, with its client Backpage, the online advertising platform for illegal prostitution, Paxful\u2019s founders exclaimed how the \u201cBackpage Effect\u201d enabled the firm to earn $2.7 million in profits. <\/p>\n\n\n\n
Shockingly, the firm marketed itself as a platform that did not need any customer verification, essentially encouraging the illicit use of crypto for schemes such as child abuse and fraud. Assistant Attorney at the DOJ, Tysen Duva, comments, \u201cPaxful profited from moving money for criminals that it attracted by touting its lack of AML controls, all while knowing that these criminals were engaged in fraud, extortion, prostitution and commercial sex trafficking.\u201d<\/p>\n\n\n\n
For more on this story, click here<\/a>.<\/p>\n\n\n\n Netherlands, February 18, 2026 \ud83c\uddf3\ud83c\uddf1: New York-based crypto prediction platform, Polymarket, was given a stern warning by Dutch regulators to stop operations in the country. The failure to do so could see the firm being fined \u20ac420,000 per week, capped at \u20ac840,000.<\/p>\n\n\n\n Polymarket is a firm that enables users to place trades or \u201cbets\u201d on the outcomes of real-world events, such as politics. Regulators across jurisdictions classify Polymarket as an unlicensed gambling firm. Its high-risk activities raise major AML red flags. Countries such as Belgium, France, Singapore, and the UK have placed similar blocks or full bans on the platform.<\/p>\n\n\n\n The Dutch regulator, Kansspelautoriteit (KSA), concluded that the firm offered unlicensed \u201cgames of chance\u201d under the Dutch Betting and Gaming Act. The case began when the platform accepted bets on the 2025 Dutch elections, including prime minister and party winners.<\/p>\n\n\n\n For more information, click here<\/a>.<\/p>\n\n\n\n India, February 4, 2026 \ud83c\uddee\ud83c\uddf3: Indian regulators, the Directorate of Enforcement (ED), have raided six locations in Ahmedabad connected to a call centre fraud ring. According to the ED, operators of the call centre faked their identity as company officials to request payments.<\/p>\n\n\n\n The operators exploited fear to steal money from US citizens, converting it to cryptocurrency to evade detection. The ED, India’s main agency for enforcing AML laws, have frozen over 31 bank accounts and seized $12,000 in crypto so far.<\/p>\n\n\n\n This case is a classic illegal financial plumbing method used by criminals. The operators took advantage of peer-to-peer (P2P) crypto rails, such as Paxful in the case above, to convert and move crypto quickly. Unfortunately, due to its large transaction volume and cross-border operations, many fraudsters use crypto platforms to conceal illegal cash flows.<\/p>\n\n\n\n For more on this, click here<\/a>.<\/p>\n\n\n\n Isle of Man, February 6, 2026 \ud83c\uddee\ud83c\uddf2: Regulators fined Shelgeyr Limited, operator of Maverick Games, \u00a3200,000 for AML breaches. The\u00a0Isle of Man Gambling Supervision Commission (GSC) noted weak expertise around KYC and AML laws in the firm.<\/p>\n\n\n\n Particularly, Maverick Games did not implement and could not provide evidence that showed it had implemented sufficient enhanced due diligence, ongoing monitoring, and risk assessments. This included enabling active or reopened accounts without proper due diligence and not identifying customers’ source of wealth.<\/p>\n\n\n\n The GSC investigation concluded that Maverick Games had breached key aspects of the Gambling (AML\/CFT) Code 2019. As a result, crypto firms are now under huge pressure to treat due diligence<\/a> and ongoing monitoring with expert oversight as mandatory guardrails, instead of just a to-do checklist.<\/p>\n\n\n\n Find more on this story here<\/a>.<\/p>\n\n\n\n United States, February 15, 2026 \ud83c\uddfa\ud83c\uddf8: Binance, the leading cryptocurrency exchange, has issued a statement this month, rejecting allegations that it facilitated Iran-linked transactions in its November 2023 AML case. US regulators fined the firm $4.3 billion for major AML rule violations at that time.<\/p>\n\n\n\n The statement came about after the top global media company, Fortune, published an article<\/a> titled, “Exclusive: Binance fires top investigators who claim to have uncovered evidence of Iranian sanctions violations.” The Binance communications team has mentioned that the article is grossly inaccurate.<\/p>\n\n\n\n The question stands: who is right? Only US regulators can settle sanctions disputes, not media claims or corporate denials. Undeniably, this case has highlighted a hard lesson for all crypto firms: AML and sanctions compliance shape long-term reputation, with headlines from previous enforcements lingering for many years.<\/p>\n\n\n\nDutch Watchdogs Issue Warning to Polymarket to Halt Activities<\/h2>\n\n\n\n
![\"Dutch](\"https:\/\/www.complycube.com\/wp-content\/uploads\/2026\/02\/header-2-1024x577.png\")
<\/figure>\n\n\n\nIndia’s Fraud Ring Call Centres Targets US Citizens<\/h2>\n\n\n\n
![\"India's](\"https:\/\/www.complycube.com\/wp-content\/uploads\/2026\/02\/4-1-1024x577.png\")
<\/figure>\n\n\n\nCrypto Sportsbook Operator Maverick Games Civil Penalty Chase<\/h2>\n\n\n\n
![\"Crypto](\"https:\/\/www.complycube.com\/wp-content\/uploads\/2026\/02\/header-3-1024x577.png\")
<\/figure>\n\n\n\nBinance Rejects Iran-Tied Sanctions Violations<\/h2>\n\n\n\n
![\"Binance](\"https:\/\/www.complycube.com\/wp-content\/uploads\/2026\/02\/header-4-1024x577.png\")
<\/figure>\n\n\n\n
![\"We](\"https:\/\/www.complycube.com\/wp-content\/uploads\/2026\/01\/header-11-1024x577.png\")
<\/figure>\n","protected":false},"excerpt":{"rendered":"