Institutional liquidity and turnkey trading infrastructure supporting over 1,500 instruments
KYC requiredSpot · Margin +2Futures & perpetualsBank transfer · Card
Paxful
Peer-to-peer crypto marketplace founded in 2015 that supported over 350 payment methods before closing
2.0/ 5
Our score
Weak
Maker fee
0%
Taker fee
1%
What is Paxful?
Paxful was a peer-to-peer cryptocurrency marketplace founded in 2015 that allowed buyers and sellers to trade Bitcoin, USDT, and other digital currencies using more than 350 payment methods. At its peak, the platform served over 14 million registered users across 140 countries before ceasing all trading and marketplace operations on November 1, 2025.
Founders and corporate structure
Ray Youssef and Artur Schaback founded Paxful in 2015, with Youssef serving as chief executive officer and Schaback as chief technical officer. Operating under Paxful Holdings, the company maintained headquarters in the United States and offices in Tallinn. Following co-founder disputes, shareholder litigation, and regulatory friction, the marketplace briefly paused in April 2023. In May 2023, Roshan Dharia took over as interim CEO to oversee restructuring alongside court-appointed custodian Srinivas Raju.
Marketplace mechanics and fees
Paxful functioned as a custodial peer-to-peer escrow exchange rather than an order-book trading venue. Buyers deposited fiat directly to sellers through bank transfers, cards, digital wallets, or gift cards, while Paxful held the digital assets in escrow until payment confirmation. Buyers paid a 0.00% trading fee, while sellers paid a 1.00% marketplace fee. Vendors set their own pricing margins above or below spot market rates, which ranged from 5% to 50%. Bitcoin network withdrawals incurred a 0.0004 BTC fee for transactions of $20 or more. Users received free monthly external withdrawals up to $1,000, after which a fee of $1 or 1% applied.
Regulatory actions and shutdown
The platform faced mounting legal scrutiny regarding its compliance practices. Following internal governance deadlocks and executive departures in 2023, Paxful announced in October 2025 that it would permanently wind down operations. On November 1, 2025, Paxful halted all deposits and active trades. Paxful Holdings subsequently pleaded guilty to federal anti-money-laundering charges in the United States, agreeing to combined penalties totaling $7.5 million from the Department of Justice and FinCEN.
Platform risks and limitations
Users on peer-to-peer marketplaces faced substantial counterparty risk, including chargeback fraud on reversible fiat payment methods and high vendor markups. Paxful required identity verification for marketplace participants, yet past governance deadlocks and regulatory actions contributed to its operational shutdown.
Founders
Roshan DhariaFormer cEO
Ray YoussefFormer co-founder and CEO
Artur SchabackFormer co-founder and COO
Best for:Historical P2P exchange researchTracking crypto regulatory enforcement actions
Pros and cons
Pros
- No trading fees charged to crypto buyers
- Supported over 350 local and international payment methods
- Over 140 countries supported prior to closure
- Fee-free monthly crypto withdrawals up to $1,000
Cons
- Ceased all trading and deposit operations on November 1, 2025
- Plea agreement incurred $7.5 million in US regulatory penalties
- Vendor spreads ranged from 5% to 50% above market rates
- P2P sellers paid a 1.00% platform fee on all completed trades
- Bitcoin withdrawals incurred a 0.0004 BTC network fee
Our review
2.0/5
Weak
Paxful offered over 350 payment methods for peer-to-peer crypto trades, but high vendor markups and permanent closure in November 2025 end its utility.
Paxful was founded in 2015 by Ray Youssef and Artur Schaback as a peer-to-peer marketplace designed to connect buyers and sellers directly. Over its operational run, the platform reached more than 14 million users across 140 countries and supported over 350 payment methods, spanning bank transfers, digital wallets, and gift cards. Buyers paid no fee on trades, while sellers paid a flat 1.00% fee. External Bitcoin withdrawals cost 0.0004 BTC on transactions of $20 or more, with an allowance of up to $1,000 per month free of internal charges before incurring a 1% or $1 fee.
The primary advantage of Paxful was its flexible fiat on-ramping for users without access to standard banking rails. However, this flexibility came with steep pricing trade-offs. Individual vendors set their own rates, routinely applying margins ranging from 5% to 50% above spot prices. In addition, the catalog centered on Bitcoin and stablecoins rather than an expansive selection of altcoins or modern derivatives.
Governance and legal difficulties challenged the company during its final years. In April 2023, Paxful briefly suspended operations amid co-founder disputes and staff departures. Roshan Dharia took over as interim CEO in May 2023 with court-appointed custodian Srinivas Raju to stabilize operations. Despite restructuring, Paxful Holdings wound down operations, halting marketplace trading and deposits on November 1, 2025. The parent entity later settled federal charges with the DOJ and FinCEN totaling $7.5 million.
Because the platform is permanently closed, traders seeking peer-to-peer crypto exchanges must turn to active alternatives with verified custodial escrows and live customer support.
Sources (1)
Specs
| Markets | P2P · unverified |
|---|---|
| Maker fee | 0% · unverified |
| Taker fee | 1% · unverified |
| Fiat deposit methods | P2P · unverified |
| Staking / earn | No · unverified |
| Futures & perpetuals | No · unverified |
| Copy trading | No · unverified |
| P2P market | Yes · unverified |
| Earn / savings products | No · unverified |
Not disclosed by the provider: Coins listed, KYC required, Accepts US customers, Proof of reserves, Mobile app, Licenses & registrations, Security features, Max leverage (x), User protection fund, Referral program.
Data from the provider's website and public sources. Fees and availability change; confirm on the official site before you sign up.
Key features
Escrow trade protection
The platform locked cryptocurrency in escrow until the seller confirmed receipt of fiat funds from the buyer.
Multi-asset support
Traders exchanged digital assets including Bitcoin and USDT directly against local fiat currencies.
Diverse payment options
The platform supported over 350 payment methods including bank wires, SEPA transfers, cards, and online wallets.
Custom vendor pricing
Sellers created customized offers with personal profit margins ranging between 5% and 50% over market spot rates.
Withdrawal fee allowances
Users received fee-free external crypto withdrawals up to $1,000 per calendar month.
Inside Paxful
Paxful peer-to-peer marketplace
A peer-to-peer exchange connecting buyers and sellers across more than 350 payment methods for Bitcoin and USDT. The marketplace used an escrow system to hold crypto until fiat transfers were confirmed.
What users say about Paxful
User sentiment is overwhelmingly negative, marked by widespread reports of platform shutdown and sudden account freezes. The vast majority of complaints center on inability to withdraw remaining funds, unresponsive customer support, and recurring maintenance fees charged on restricted accounts.
In their own words
“anyone else stuck in paxful review with no updates? been trading on paxful for a while, never had any big issues till now. a few weeks ago my account got flagged for compliance review out of nowhere. no clear reason, no reply from support except the usual copy-paste please be patient.”
“Unable to withdraw funds. Desperately need them. Please help. I've been trying hard to get in contact with someone from the Paxful team, but since the shutdown, I've had no luck.”
“Why am I charged a maintainance fee? And why was my account randomly b*nned I don't think I did anything fishy. It's been years since I accessed paxful. I don't even remember the password anymore. I am also unable to access the account. Why did paxful ban me without letting me know?”
Based on 76 Reddit posts and comments from the last 12 months, checked Oct 21, 2026. These are posts by users on other sites, not reviews submitted on CryptoReview.
User reviews
No user reviews yet. Have you used Paxful? Share your experience below.
FAQ
Who founded Paxful?
Paxful was founded in 2015 by Ray Youssef and Artur Schaback. Roshan Dharia later served as interim CEO starting in May 2023.
Is Paxful still operational?
No, Paxful ceased all trading and deposit operations on November 1, 2025. The platform announced a complete wind-down following regulatory and legal challenges.
What fees did Paxful charge for trading?
Paxful charged a 0.00% fee for cryptocurrency buyers and a 1.00% fee for sellers. However, individual sellers set their own pricing margins, which often ranged from 5% to 50% over market price.
What was the Paxful Bitcoin withdrawal fee?
Paxful charged a network fee of 0.0004 BTC for Bitcoin withdrawals of $20 or more. Users could withdraw up to $1,000 per month without platform fees, after which a fee of $1 or 1% applied.
What security and regulatory issues affected Paxful?
Paxful suspended operations in April 2023 due to internal shareholder disputes and regulatory hurdles. Following its November 2025 closure, parent company Paxful Holdings pleaded guilty to federal anti-money-laundering charges, resulting in $7.5 million in penalties.
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