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: The company stated that the costs associated with remediation and compliance efforts became unsustainable. Background and Original Mission
While popular, the platform faced significant criticism throughout its lifespan: paxful.com
As of , Paxful wound down all core marketplace activities. The site remains accessible for a Limited Service only: allowing existing users to withdraw their remaining digital assets. No new accounts, trades, or transactions are permitted. The company cited several factors for its closure: : The company stated that the costs associated
: Management referenced the "impact of historic misconduct" by former co-founders prior to 2023. paxful.com
: Paxful was fined $3.5 million by FinCEN in December 2025 for "facilitating money laundering" and failing to maintain proper Anti-Money Laundering (AML) protocols.