Paxful, founded in 2015, was a prominent peer-to-peer cryptocurrency marketplace that connected over 14 million users across more than 140 countries. The platform offered a wide array of over 500 payment methods, enabling users to buy and sell cryptocurrencies such as Bitcoin and Tether. In October 2024, Paxful announced a significant upgrade to its brand and products, introducing AI-enhanced safety, security, and support features. However, the company faced legal challenges, including co-founder Artur Schaback’s guilty plea in July 2024 for failing to maintain an effective anti-money laundering program. In December 2025, Paxful Holdings Inc. agreed to plead guilty to federal charges and pay a $4 million criminal penalty. As of December 2025, Paxful has shut down its operations, advising users to withdraw all funds as soon as possible.
