Paxful Users Urged To Withdraw Funds As Firm Shuts Down

Peer-to-peer cryptocurrency marketplace Paxful has announced it is shutting down operations after nearly a decade of connecting millions of crypto traders across the world. The company confirmed that all services will cease on November 1, 2025, and urged users to withdraw their funds before the deadline.

In a statement released earlier this month, Paxful said the decision followed “the lasting impact of historic misconduct” by its former co-founders, coupled with the high cost of compliance and legal remediation. The firm clarified that the shutdown was a “strategic wind-down” rather than an insolvency, emphasizing that all user funds remain secure and that withdrawals will continue until the closure date.

Founded in 2015, Paxful quickly rose to prominence by offering a peer-to-peer model that allowed users to buy and sell Bitcoin and other cryptocurrencies using hundreds of local payment methods. The platform became particularly popular in Africa, with Kenya, Nigeria, and Ghana ranking among its largest markets. Paxful was often credited for expanding financial access to the unbanked and underbanked, allowing traders to use mobile money, bank transfers, and even gift cards to buy cryptocurrency.

However, the company’s success was overshadowed by internal turmoil and regulatory challenges. In 2023, Paxful temporarily suspended operations following a public fallout between its co-founders, Ray Youssef and Artur Schaback, who later faced legal disputes and accusations of mismanagement. Though operations resumed under new management, Paxful says the residual effects of those controversies have made continued compliance financially unsustainable.

Industry analysts have described Paxful’s closure as the end of an era for decentralized crypto trading in developing markets. The platform had become one of the last major global peer-to-peer exchanges operating independently after other P2P services either merged or fell under stricter regulation. Experts say the closure will likely push users toward custodial exchanges or alternative P2P networks, reducing the flexibility and local liquidity that made Paxful attractive in the first place.

Paxful has assured users that withdrawals remain open and has issued detailed guidance on how to access their funds. According to the company, users should log into their accounts, cancel any open trades, and transfer remaining cryptocurrency balances to secure external wallets. For those with frozen or disputed accounts, the firm has pledged to provide case-by-case support throughout the wind-down process.

The company has also urged users to save transaction records, trade histories, and verification documents before the platform goes offline. Those with difficulties accessing their accounts are advised to contact customer support through official channels.

While Paxful insists the decision was made to protect users and ensure an orderly exit, the announcement has left many traders — particularly in Africa — uncertain about where to turn next. For nearly ten years, Paxful had provided an accessible bridge into the world of digital assets for millions of people without bank accounts.

As the November 1 shutdown date approaches, users are being warned to act swiftly to safeguard their funds. Industry observers say Paxful’s fall is a cautionary tale about the challenges of balancing rapid growth, leadership integrity, and global regulatory compliance in the volatile crypto world.