“Paxful’s employees quickly realized that these purported ‘auditors’ were merely Schaback’s friends who did not possess any qualifications and could not possibly bring any value to the company,” the filing reads. “After a company party, for example, the head ‘auditor’ became too intoxicated to control himself and admitted as much to several Paxful employees, stating, ‘guys, don’t worry, we are here just to make some money from Paxful, and after that, we are gone.’”


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