- Jun 28, 2023
- 432
- 229
Just tried the app wasn't loading then red this:
Paxful, once a leading peer-to-peer (P2P) Bitcoin marketplace, officially wound down operations and shut down on November 1, 2025, due to "historic misconduct" by former leadership and unsustainable compliance costs. Following legal pressure regarding AML/KYC failures and money laundering, the platform shifted to a withdrawal-only mode to secure user funds.
Key Details About the Paxful Shutdown:
Closure Date: The platform officially ceased all trading services on November 1, 2025.
Reasons for Shutdown: The company cited "historic misconduct" by former co-founders (Artur Schaback and Ray Youssef) prior to 2023 and the high cost of rebuilding trust and compliance.
Legal Issues: Former CTO Artur Schaback pleaded guilty to AML violations, and the company faced significant fines for failing to file suspicious activity reports and allowing illicit transactions.
User Funds: Paxful initiated a, "withdrawal-only" mode, allowing users to reclaim their assets, though some users faced restrictions and delays.
Impact: The closure left many users, particularly in high-volume markets like Nigeria, stranded and seeking alternatives.
Users with remaining balances were advised to withdraw their funds promptly to avoid ongoing maintenance fees.
Paxful, once a leading peer-to-peer (P2P) Bitcoin marketplace, officially wound down operations and shut down on November 1, 2025, due to "historic misconduct" by former leadership and unsustainable compliance costs. Following legal pressure regarding AML/KYC failures and money laundering, the platform shifted to a withdrawal-only mode to secure user funds.
Key Details About the Paxful Shutdown:
Closure Date: The platform officially ceased all trading services on November 1, 2025.
Reasons for Shutdown: The company cited "historic misconduct" by former co-founders (Artur Schaback and Ray Youssef) prior to 2023 and the high cost of rebuilding trust and compliance.
Legal Issues: Former CTO Artur Schaback pleaded guilty to AML violations, and the company faced significant fines for failing to file suspicious activity reports and allowing illicit transactions.
User Funds: Paxful initiated a, "withdrawal-only" mode, allowing users to reclaim their assets, though some users faced restrictions and delays.
Impact: The closure left many users, particularly in high-volume markets like Nigeria, stranded and seeking alternatives.
Users with remaining balances were advised to withdraw their funds promptly to avoid ongoing maintenance fees.
