Paxful Unfreezes Majority of Accounts

Paxful, the peer-to-peer cryptocurrency marketplace, has announced that it has unfrozen 88% of the user accounts that were previously frozen, following the suspension of its operations. The remaining $4.4 million in frozen funds is currently being held by US financial regulators, according to Paxful CEO Ray Youssef.

Youssef revealed the news in an April 16 Twitter thread, stating that the unfreezing of accounts had been achieved “with no engineers or compliance folks”. He also noted that the unfreezing process had taken more than a week to complete.

Paxful’s decision to freeze user accounts came as a surprise to many in the cryptocurrency community. The company did not provide a clear explanation for the move, other than stating that it was necessary to comply with regulatory requirements. The move left many users unable to access their funds, leading to criticism from the community.

Following the announcement of the unfreezing of accounts, Paxful has been working to reassure its users. The company has stated that it is committed to compliance with regulatory requirements, but also acknowledges the importance of customer service and user experience.

Paxful is one of the largest peer-to-peer cryptocurrency marketplaces, with operations in more than 160 countries. The platform allows users to buy and sell cryptocurrency using a range of payment methods, including bank transfers, credit cards, and gift cards.

The unfreezing of the majority of Paxful’s frozen accounts is a positive development for the company and its users. However, it remains to be seen how the remaining frozen funds will be dealt with by US financial regulators.

The move by Paxful to freeze user accounts highlights the ongoing challenges faced by cryptocurrency companies in complying with regulatory requirements. As governments around the world seek to regulate the cryptocurrency industry, companies like Paxful will need to navigate a complex and evolving regulatory landscape.

In conclusion, the unfreezing of 88% of previously frozen user accounts on Paxful is a welcome development for the cryptocurrency community. While the remaining frozen funds are still in the hands of US financial regulators, the move by Paxful to address the issue is a positive sign. As the cryptocurrency industry continues to evolve, regulatory compliance will remain a key challenge for companies like Paxful.


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Nigerian Crypto Community Affected by Paxful Shutdown

The worldwide user community of Paxful, which was a prominent peer-to-peer bitcoin marketplace, has been left looking for alternatives after the platform’s collapse. However, it has a big effect on the crypto community in Nigeria, where the platform has a huge influence on the acceptance and use of cryptocurrencies. This has led to a considerable impact.

According to the blog written by Paxful’s founder and CEO Ray Youssef, the company made the announcement on April 4 that it will be ceasing its activities because of “key staff departures” and the regulatory climate. A great number of Nigerians who conduct their financial dealings using the platform’s services are now feeling uneasy as a result of this statement.

According to Chainalysis’s “The 2020 Geography of Cryptocurrency Report,” out of the 154 nations that were analyzed for the report, Nigeria placed ninth in terms of the acceptance and use of cryptocurrencies. This highlights the importance of the cryptocurrency business to the nation. The innovative application of peer-to-peer technology in Nigeria that was pioneered by Paxful has contributed to the growth of the business, which has resulted in more Nigerians having access to cryptocurrencies.

A data analyst by the name of Obinna Uzoije, a member of the Paxful Nigerian community, recently told his story of utilizing the platform while he was just starting out in his professional life. Paxful was the platform that he used in order to convert the dollars that he had been given by his employers as payment into naira. Skrill, an online payment network, was used in order to transfer money to independent contractors working in Nigeria for multinational corporations. Because some Paxful users accepted the money, it became much simpler for independent contractors to trade them in for Bitcoin or hard currency. Many crypto aficionados in Nigeria are now left wondering what the future holds for cryptocurrency markets as a result of the closure of Paxful, which occurred recently.

Over-the-counter (OTC) vendor Akeem Abdullahi said that Paxful’s escrow service has given rise to a new generation of OTC vendors. Gift cards might be purchased from people who intended to sell them but lacked the computer literacy required to utilize the platform by the merchants. Many Nigerians gained a greater feeling of financial autonomy and an entrepreneurial spirit as a direct result of this development.

On Twitter, several members of the Nigerian cryptocurrency community voiced their fears regarding the possibility of individuals regaining access to the monies that they had lost. However, Youssef has reassured users in a tweet that the Paxful team is working on clearing users’ send-outs, which indicates that users’ cash would be secure. This information was shared by Youssef.

In conclusion, the termination of Paxful has had a substantial negative effect on the cryptocurrency community in Nigeria, where the platform played an essential part in the development of the cryptocurrency business. Given the unpredictability of the future of cryptocurrency markets, many people in Nigeria are forced to look for alternatives to Paxful while simultaneously fretting about the safety of their assets.


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Paxful Joins Hands with iProov, Providing Identity Verification

Paxful, a leading peer-to-peer (P2P) crypto trading platform, has selected iProov to provide service to verify user identity when onboarding and making transactions.

Based on Paxful’s objective of offering significant access to crypto, the partnership with iProov will be a stepping stone toward a more secure user experience. 

George Georgiades, Paxful’s chief compliance officer, pointed out:

“We need to ensure we provide the highest level of security and peace of mind to users. iProov’s technology allows us to safeguard against fraud and theft for our community while ensuring continued access and growth of the platform.”

As a reputable online facial biometric authentication company, iProov uses Liveness Assurance technology to authenticate that the online user is the right person and not an imposter. 

The partnership will enable Paxful users to carry out accurate face verifications when undertaking a transaction because a brief face authentication is required instead of a one-time passcode (OTP) or password. 

Andrew Bud, iProov’s CEO, stated:

“With the tremendous influx of new users into the crypto space comes an even greater invasion of fraudsters looking to empty or take over accounts or even hold them for ransom.” 

Furthermore, iProov will make new Paxful users’ onboarding seamless as more people continue eyeing the crypto space. Bud added:

“Paxful’s mission is a critical one that helps connect the underbanked and unbanked around the globe to financial opportunities and stability. We are delighted to support them in offering inclusive and secure remote verification measures to protect their users.”

To expand its mission of providing financial inclusion to the unbanked and underbanked, Paxful launched its first crypto debit card in 2020.  

Image source: Shutterstock


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Bitcoin education center launches in El Salvador to boost adoption

Major peer-to-peer (P2P) Bitcoin (BTC) platform Paxful is working to help Salvadorans better use BTC as the cryptocurrency became legal tender in El Salvador last year.

Paxful on Wednesday announced the launch of “La Casa Del Bitcoin,” a new educational and training center in El Salvador to enable free learning opportunities related to BTC.

As part of the effort, Paxful will hold educational workshops and talks focused on Bitcoin and financial inclusion in the country. The center will focus on growing awareness around the benefits of buying and selling BTC as a means of exchange for the local community to further drive the next wave of Bitcoin mass adoption.

The center will also be home to the Built With Bitcoin Foundation offices, a United States-based nonprofit organization dedicated to providing clean water, access to quality education, sustainable farming, and humanitarian support, all powered by Bitcoin and cryptocurrencies. Paxful co-founder and CEO Ray Youssef is the executive director at the foundation.

“Bitcoin education is the key to financial freedom and El Salvador is leading the way with the support of the Bitcoin community,” Built With Bitcoin Foundation’s director of philanthropy Yusuf Nessary said.

According to Will Hernandez, director of Latin American growth at Paxful, the company saw a 300% increase in Salvadoran users. “What we’re witnessing is a moment of transformation in El Salvador. Peer-to-peer platforms are driving adoption in emerging markets, and as a people-powered platform, we understand that education is crucial to the next wave of adoption,” he noted.

Paxful did not immediately respond to Cointelegraph’s request for comment. The article will be updated pending new information.

Related: El Salvador relaunches Chivo wallet, plans to deploy 1,500 Bitcoin ATMs

Paxful’s new effort to raise awareness around Bitcoin in El Salvador comes in response to some existing crypto-related skepticism among El Salvadorans despite the country adopting BTC as legal tender on Sept. 7, 2021.

As previously reported, as many as 90% of El Salvadorans said their understanding of Bitcoin was poor or even non-existent in September 2021. One survey also later suggested that more than 50% of El Salvadorans were not familiar with Bitcoin.