“Can a peer-to-peer crypto marketplace serve the global unbanked without adequate AML controls — and the answer proved to be no.”
Founded in 2015 as a peer-to-peer Bitcoin marketplace targeting the unbanked and underbanked globally, Paxful grew to 14 million users across 140+ countries with 500+ payment methods. Despite adding biometric KYC (iProov) in 2022 and regional fintech partnerships, the platform failed to maintain adequate AML controls. In December 2025, Paxful Holdings Inc. pleaded guilty to federal criminal charges, paid a combined ~$7.5M in penalties, and ceased all trading operations — entering a formal wind-down phase where only asset withdrawals are permitted.
Paxful processes payments through Paxful Pay (self-operated).
Paxful was founded by Ray Youssef and is founded in 2015, headquartered in Delaware, USA (incorporated); Panama City, Panama (operational HQ during wind-down).
Get a read on where your own stack stands against Paxful and the rest of its category — what they built versus bought, which providers they use, and where the gaps in your own strategy and competitive set actually are.