The government is suing Paypal, accusing the payment processor of using its power to manipulate payments in an effort to conceal money laundering and other illicit activities.
The government filed the lawsuit Monday in U.S. District Court in Manhattan, alleging that Paypal used the same “bribery” scheme as its predecessor, the online payment company Venmo.
The lawsuit also alleges that the scheme benefited Paypal through its “predatory” and “cheap” practices, which made it vulnerable to fraud.
Paypal CEO Tony Gallippi said the company is taking the government’s lawsuit seriously.
“We have a long-standing commitment to fighting for consumers, to fighting to ensure they are able to have access to information about companies that are serving the public good,” he said.
“This case is a serious attack on the people of the United States, and it should not be allowed to stand.”
The lawsuit comes as the U.K. government continues to fight for more information about the alleged fraud.
The British government launched an investigation into Paypal after it became aware of fraudulent activity in 2015.
The company, which has operations in more than 200 countries, is one of the most popular and profitable online payment processors.
The Justice Department says the government has already identified thousands of accounts that have been used to make illegal payments.
Gallippi and other Paypal executives have repeatedly denied the company’s wrongdoing.
But the Justice Department has launched an inquiry into whether the company engaged in criminal activity, which it says has been going on for years.
The FBI has also opened a probe into whether Paypal misled consumers.
The U.N. Financial Action Task Force has called on Paypal to make a public statement about the fraud, saying it has found evidence of fraud in countries around the world, including China, Russia, the U of T and the Philippines.
The case is being handled by the U: Department of Justice’s Civil Division.