Despite pleading guilty to serious AML violations, Paxful received a reduced $4 million penalty instead of the $112.5 million figure agreed by the parties.

Peer-to-peer virtual asset trading platform Paxful has been sentenced to pay a $4 million criminal penalty after pleading guilty to multiple federal offenses, according to an official press release from the US Department of Justice.

The sentence follows Paxful’s admission that it conspired to promote illegal prostitution, violated the Bank Secrecy Act, and knowingly transmitted funds derived from criminal activity.

Illicit Crypto Flows

The penalty was determined based on the company’s ability to pay. Federal authorities said Paxful profited from facilitating transactions for criminals while promoting its lack of anti-money laundering (AML) controls and failing to comply with applicable money laundering laws, despite knowing that users on its platform were engaged in crimes including fraud, extortion, prostitution, commercial sex trafficking, romance scams, and human trafficking.

Court documents revealed that Paxful operated an online virtual currency platform and money transmitting business where users traded cryptocurrency for cash, prepaid cards, gift cards, and other items. From January 1, 2017, to September 2, 2019, Paxful facilitated more than 26.7 million trades worth nearly $3 billion in total value and generated more than $29.7 million in revenue.

Authorities said Paxful knew that a portion of these transactions involved funds derived from criminal offenses, including fraud schemes and illegal prostitution. The company also deliberately transferred virtual currency on behalf of Backpage, an online advertising platform that later admitted in criminal proceedings that it advertised and profited from illegal prostitution, including content involving minors.

According to the Justice Department, Paxful’s founders referred internally to the “Backpage Effect,” which they credited with helping the platform grow. Between December 2015 and December 2022, Paxful’s dealings with Backpage and a similar website resulted in nearly $17 million worth of Bitcoin being transferred from Paxful wallets to those sites. From this, Paxful earned at least $2.7 million in profits.

The plea agreement states that from July 2015 to June 2019, Paxful marketed itself as a platform that did not require know-your-customer (KYC) information. It not only allowed users to trade without collecting sufficient KYC data but also provided third parties with AML policies that were not implemented or enforced, and failed to file suspicious activity reports despite clear indicators of criminal conduct.

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DOJ Cuts Penalty

Paxful pleaded guilty to conspiring to violate the Travel Act by promoting illegal prostitution through interstate commerce, conspiring to operate an unlicensed money transmitting business, and conspiring to violate the Bank Secrecy Act’s AML requirements.

Although the parties agreed that the appropriate criminal penalty was $112.5 million, the department concluded Paxful could only pay $4 million as part of the resolution.

Paxful’s guilty plea was part of a coordinated resolution with the Financial Crimes Enforcement Network (FinCEN), and in July 2024, the company’s co-founder and former CTO, Artur Schaback, also pleaded guilty to related AML violations.

TLDR:

• Bitcoin’s $1.4 trillion market cap represents just 4% of gold’s $35 trillion global valuation share 
• Cryptocurrency comprises 0.4% of bond markets and 1.2% of equities in proportional asset analysis 
• Top 100 institutions control 1.13 million BTC while daily mining produces only 450 new coins total 
• One percent reallocation from gold holdings would generate $350 billion in new Bitcoin demand flow

Bitcoin’s position within the $100 trillion global financial system reveals stark proportional disparities compared to traditional asset classes.

The cryptocurrency’s $1.4 trillion market capitalization represents 0.4% of worldwide bond markets and 1.2% of global equities as of February 2026.

Crypto analyst Crypto Patel published detailed comparative analysis examining Bitcoin against every major asset category.

The study maps Bitcoin’s current footprint across bonds, stocks, real estate, commodities, and gold holdings. Mathematical projections demonstrate how minor capital shifts from legacy assets could reshape Bitcoin’s valuation significantly.

Bitcoin Ranks as Rounding Error in $100 Trillion Asset Hierarchy

The global asset landscape totals over $100 trillion when combining all major investment categories. Bond markets alone exceed $130 trillion in aggregate value worldwide.

Global equity markets represent approximately $115 trillion in total capitalization. Real estate holdings comprise roughly $380 trillion across residential and commercial properties.

Against this backdrop, Bitcoin’s $1.4 trillion footprint appears mathematically insignificant in proportional terms.

Gold maintains a $35 trillion market capitalization, creating a 25-fold size advantage over Bitcoin. The precious metal’s dominance in store-of-value allocation reflects centuries of institutional acceptance.

Bitcoin currently captures just 4% of gold’s total market share. This comparison highlights the vast distance between digital and physical reserve assets.

Traditional investors continue allocating overwhelmingly toward established safe-haven holdings rather than emerging alternatives.

Crypto Patel’s analysis positions Bitcoin as the smallest component among major global asset classes. The cryptocurrency represents 0.37% of the $380 trillion real estate market.

Corporate and government bonds dwarf Bitcoin by factors exceeding 90 times current valuation. Even within the narrower commodities category, Bitcoin trails far behind aggregate precious metals holdings.

The proportional analysis reveals Bitcoin occupies marginal space in global wealth distribution patterns.

Small Allocation Shifts Generate Outsized Bitcoin Price Impacts

Mathematical modeling demonstrates how percentage-based reallocations dramatically affect Bitcoin prices due to current small market cap.

A 1% shift from gold holdings into Bitcoin would generate approximately $350 billion in new demand. This capital influx would push Bitcoin’s market cap toward $1.75 trillion at current supply levels.

The price per coin would rise substantially given the fixed 21 million maximum supply. Simple proportional calculations reveal asymmetric upside potential from modest allocation changes.

Scenario analysis projects Bitcoin prices under various global asset reallocation assumptions. Capturing 10% of gold’s market share would establish a $5.4 trillion Bitcoin market cap.

This translates to approximately $257,000 per coin based on current circulating supply. A 25% share of gold markets would push valuations toward $10.15 trillion total.

The corresponding per-coin price would approach $483,000 under this allocation model. These projections assume linear market cap relationships without considering supply constraints.

Bond and equity market reallocations produce even more dramatic mathematical outcomes given their larger base sizes. Just 2% of global bond markets flowing into Bitcoin equals $2.6 trillion in new demand.

This exceeds Bitcoin’s entire current market capitalization by 85%. The supply-constrained nature of Bitcoin amplifies price impacts from institutional reallocation decisions. Traditional assets lack comparable scarcity mechanisms that magnify demand pressure effects.

Institutional Infrastructure Enables Cross-Asset Capital Flows

Bitcoin exchange-traded funds launched in January 2024 created regulated pathways for traditional capital allocation. Wealth management platforms now offer Bitcoin alongside conventional bond and equity products.

Major wirehouses including Bank of America and Wells Fargo distribute Bitcoin ETFs to advisory clients. This infrastructure removes previous barriers preventing institutional cross-asset reallocation. Financial advisors increasingly recommend 1% to 5% Bitcoin allocations within diversified portfolios.

Regulatory developments could unlock retirement account allocations currently restricted from Bitcoin exposure. Defined-contribution plans hold trillions in assets presently allocated entirely to traditional investments.

Potential rule changes would permit 401(k) administrators to include Bitcoin as an investment option. Even 1% reallocation from these plans would generate $87 billion in new Bitcoin demand. This represents four times the total spot ETF inflows since product launches.

Sovereign adoption patterns suggest governments may begin treating Bitcoin as a reserve asset category. The United States government maintains 328,372 BTC as a strategic holding.

This positions Bitcoin alongside gold and foreign currency reserves in official asset classifications. Other nations face game-theory incentives to establish similar positions.

Cross-border capital flows into Bitcoin could accelerate if sovereign wealth funds initiate allocation programs.

Pi Coin price surged 25% in the past 24 hours, marking its strongest single-day gain since November 2025. The move also represents the first consecutive advance in nearly six weeks. 

The rally comes as broader crypto market sentiment stabilizes. Unlike previous brief spikes, this uptick reflects improving technical and derivatives signals. 

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Pi Coin Holders And Traders Change Stance

The Relative Strength Index, or RSI, shows Pi Coin rebounded after spending nearly a month in oversold territory. RSI readings below 30.0 typically indicate heavy selling pressure. In this case, extended bearishness followed the broader market downturn.

Oversold conditions did not signal an immediate reversal. Instead, they reflected prolonged weakness. Historically, Pi Coin has staged rallies after exiting oversold zones. The recent move above the neutral threshold suggests strengthening bullish momentum.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

As RSI climbs higher, buying pressure appears more consistent. Improved momentum signals that sellers may be losing control. If sustained, this shift could support additional upside in Pi Coin price action.

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Derivatives data reinforces the improving outlook. Pi Coin’s funding rate has shifted from negative to positive. A positive funding rate indicates long positions now dominate the futures market.

Previously, negative funding reflected heavy short positioning. The reversal suggests traders are rotating from bearish to bullish exposure. Reduced short dominance lowers the probability of aggressive downside volatility in the near term.

Pi Coin Price Is Finding Support

Pi Coin price is trading at $0.171 at publication, remaining just below the $0.173 resistance level. This barrier represents the immediate hurdle for continued recovery. A decisive breakout requires sustained buying pressure.

If bullish momentum persists, Pi Coin could climb above $0.180 and target $0.197. A move toward $0.212 would confirm a stronger structural recovery. Reclaiming that level would signal broader investor confidence returning.

However, risk remains from underwater long-term holders. If profit-taking accelerates, Pi Coin’s rally may stall. A pullback toward $0.150 or closer to the all-time low of $0.130 would invalidate the bullish thesis and reintroduce downside pressure.

TLDR:

• Three major exchanges show unswept XRP lows: KuCoin at $1.08, Bitfinex at $1.00, and Binance perp at $0.77. 
• Historical mean-reversion data suggests 45% average pullback could target the $0.75 to $0.65 support zone. 
• Seven exchange lows already swept including Poloniex, Gemini, Coinbase, Bitstamp, and Binance spot pairs. 
• Two scenario paths emerge: rapid liquidity sweep with violent reversal or slow bleed to targets before bounce.

XRP price action has captured attention from technical analysts who point to specific exchange liquidity levels yet to be tested.

Crypto analyst EGRAG CRYPTO highlighted several key price points across major trading platforms that could serve as downside targets.

The analysis combines historical mean-reversion patterns with unfilled liquidity zones on exchange charts. Market participants now watch whether these levels will be reached before any reversal occurs.

Untapped Exchange Lows and Mean-Reversion Data

Three major exchange price levels remain unswept according to EGRAG CRYPTO’s recent analysis. KuCoin’s XRP/USDT pair shows a low of $1.08 that has not been taken yet.

Bitfinex recorded an XRP/USD low at $1.00 that also remains untouched. Binance perpetual futures for XRP/USD marked a wick down to $0.77 without a subsequent test.

The analyst contrasted these with already-swept levels across multiple platforms. Poloniex, Gemini, Coinbase, Bitstamp, TradingView, and Binance spot all saw their respective lows tested in recent price action.

Poloniex XRP/USDT touched $2.26 while the USD pair hit $2.17 during previous drawdowns. Gemini reached $2.10, Coinbase dropped to $1.77, and Bitstamp found support at $1.58 before bouncing.

Historical mean-reversion patterns from the Super Guppy indicator add context to potential downside projections. Cycle 1 showed approximately 50% retracement from local highs during previous corrections.

Cycle 2 demonstrated around 40% pullback before finding support and reversing. The average of these two cycles suggests roughly 45% mean reversion could occur.

Based on this historical data, the analyst projects a potential final sweep into the $0.75 to $0.65 range. This zone aligns with macro green uptrend support visible on longer-term charts.

The level also represents where remaining liquidity completion would occur across exchanges. An ascending triangle pattern on higher timeframes would remain structurally valid even with a move to this area.

Two Scenario Paths and Technical Structure

The analysis presents two distinct paths forward for XRP price development. The first scenario involves a rapid liquidity sweep followed by an immediate violent reclaim of higher levels.

This pattern typically generates the fastest reversals when market sentiment reaches maximum pain. Such moves often catch traders off guard after capitulation moments.

The alternative path involves a slower price bleed toward the $0.75 to $0.65 zone over an extended period. After tagging these levels and completing the liquidity sweep, a reversal would then commence.

Both scenarios ultimately lead to the same technical outcome despite different timeframes and volatility profiles.

EGRAG CRYPTO emphasized viewing this as structural price action rather than emotional market behavior. The analyst noted that Binance printed the most aggressive downward wick visible on current charts.

The commentary stressed that tolerance for potential moves to $0.75 to $0.65 separates long-term holders from short-term participants.

The analyst disclosed maintaining a long-term position untouched while actively trading the macro range. Dollar-cost averaging continues for core holdings alongside cash reserves held for optimal entry timing.

This approach separates strategic accumulation from tactical trading within the broader price structure.

The upcoming Smart Cashtags feature on the X social media platform will allow users to trade stocks and crypto directly within the application, according to Nikita Bier, X’s head of product.

“We are launching a number of features in a couple of weeks, including Smart Cashtags that will enable you to trade stocks and crypto directly from the timeline,” Bier said in an X post on Saturday.

Bier announced the upcoming rollout of Smart Cashtags in January, teasing the possibility of in-app trading in an image showing the feature in the announcement, but no official confirmation.

The X platform introduced a basic Cashtag system in 2022 that tracked the prices of major stocks and cryptocurrencies and provided visual financial data for supported assets, including Bitcoin (BTC) and Ether (ETH), but the feature was discontinued.

Cointelegraph reached out to X about the upcoming feature, but did not receive a response by the time of publication.

The X platform is a hub of crypto-related activity, and the integration of in-app trading brings it closer to owner Elon Musk’s stated goal of becoming an “everything app,” similar to WeChat, a messaging and social media app in China with integrated payment features.

Related: Musk’s xAI seeks crypto expert to train AI on market analysis

X inches into payments as it attempts to become an “everything app”

Elon Musk provided an update on Wednesday for the launch timeline of X Money, the platform’s payments feature that will allow users to send each other money, similar to Venmo or Cash App.

Speaking at his AI company xAI’s  “All Hands” presentation, Musk said the X Money feature is still in a limited beta testing phase over the next two months, with a worldwide rollout after the testing phase concludes.

“This is intended to be the place where all money is. The central source of all monetary transactions,” he said.

The X platform has about 600 million average monthly users, according to Musk. “We want it to be such that if you wanted to, you could live your life on the X app,” he added.

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