Paxful to Shut Down by November 2025: Africa’s Leading P2P Crypto Exchange Bows Out After a Decade of Impact
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Paxful, one of Africa’s most popular peer-to-peer (P2P) cryptocurrency exchanges, has announced plans to permanently close its operations by November 1, 2025. The closure marks the end of a decade-long journey that helped millions of users across Africa trade and access digital currencies safely and conveniently.
In an official statement posted on its X (formerly Twitter) account, the company cited “the lasting impact of historic misconduct by former co-founders Ray Youssef and Artur Schaback prior to 2023, combined with unsustainable compliance remediation costs” as the major reasons behind the decision. Paxful emphasized that the move is a strategic wind-down rather than a financial collapse and assured users that all funds remain safe and will be returned securely.
A Decade of Empowering Africa Through Crypto
Founded in 2015, Paxful quickly became Africa’s most trusted P2P Bitcoin marketplace, serving millions across Nigeria, Kenya, South Africa, and other emerging markets. With over 400 payment options, including mobile money, bank transfers, and gift cards, the platform made it easy for users to buy and sell Bitcoin, often using crypto as a hedge against inflation and local currency devaluation.
Paxful’s accessibility and innovative approach to financial inclusion made it a key player in Africa’s growing cryptocurrency economy, helping millions navigate economic instability and lack of access to traditional banking services.
The Reasons Behind Paxful’s Shutdown
Despite significant reforms since 2023 under new leadership, Paxful says the long-term damage from past management and rising compliance costs made continued operations unsustainable. The company stated:
“Since 2023, Paxful has transformed with new leadership and strengthened ethical operations. Despite our success, continuing as a non-U.S.-based entity is not viable.”
Court documents revealed that former CTO Artur Schaback pleaded guilty to federal crimes in the United States in 2024, including failing to implement an effective Anti-Money Laundering (AML) program between 2015 and 2019.
Additionally, Schaback had previously sued co-founder Ray Youssef in 2023, accusing him of misappropriating company funds and evading sanctions. Following their fallout, Youssef launched Noones, another P2P trading platform focused on emerging markets, which has since attracted over two million users globally.
User Protection and Farewell Message
In its farewell note, Paxful expressed gratitude to its 14 million users across more than 140 countries, assuring that the exit will be handled responsibly to protect users’ assets.
“We are deeply grateful for the opportunity to have served our community for the past ten years,” the company said.
Despite extensive efforts in compliance restructuring and financial reorganization, Paxful admitted that regulatory costs and sustainability challenges ultimately outweighed the benefits of continuing operations. The company described the decision as a long-term strategic move after years of evaluation and investment.
The End of an Era for P2P Crypto Trading in Africa
Paxful’s closure marks the end of an era for peer-to-peer cryptocurrency trading, once the backbone of Bitcoin adoption across Africa. Increasing regulatory scrutiny, especially around AML and Know Your Customer (KYC) standards, has forced several similar exchanges including LocalBitcoins to either shut down or restrict operations.
Nonetheless, Paxful’s influence on Africa’s crypto ecosystem remains undeniable. The platform introduced millions to digital finance and inspired a generation of fintech innovators, developers, and traders across the continent.
As Paxful winds down, its legacy continues through the rise of decentralized and compliance-driven platforms that are shaping the next phase of Africa’s digital finance revolution.
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