Paxful, one of Africa’s top peer-to-peer crypto exchanges, has announced it will shut down by November 1, 2025. This will end ten years of helping millions trade and use digital currencies, especially in Africa.
In a statement posted on the company’s official X account, they said, “Paxful is winding down operations by November 1, 2025, due to the lasting impact of historic misconduct by former co-founders Ray Youssef and Artur Schaback prior to 2023, combined with unsustainable compliance remediation costs.”
The company described the decision as a strategic closure, not a financial collapse, stressing that all user funds are secure and will be returned safely. It added, “We unequivocally condemn those past actions, which do not reflect Paxful’s values today.”
The issues behind Paxful’s shutdown plan
Founded in 2015, the exchange quickly became the go-to P2P Bitcoin marketplace across Africa and other emerging markets. It offers access to more than 400 payment methods, including mobile money, gift cards, and bank transfers.
The platform’s ease of use and flexibility allow millions of Africans, especially in Nigeria, Kenya, and South Africa, to trade Bitcoin as a hedge against inflation and currency devaluation.
However, despite rebuilding under new leadership since 2023, Paxful says it could not overcome the long-term damage caused by its former executives.
“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,” the statement explained.
Court documents from July 2024 revealed that Artur Schaback, Paxful’s former Chief Technology Officer, pleaded guilty to federal crimes in the United States, including failing to establish an effective anti-money laundering (AML) program between 2015 and 2019.
In 2023, Schaback filed a lawsuit against Ray Youssef, accusing him of misappropriating company funds and evading sanctions.
Youssef has since moved on to head Noones, another P2P marketplace targeting emerging markets. As of early 2025, it had more than two million users globally.
But, they have assured users that their exit will be carefully managed to protect customer funds and avoid losses.
“We are deeply grateful for the opportunity to have served our 14 million users across 140+ countries over the past ten years,” the company said in a farewell note.
Despite a complete compliance overhaul and financial restructuring in recent years, Paxful admits that keeping up with the cost of regulation has become too heavy to bear. The company said the shutdown was based on “a long-term assessment of sustainability after significant investments in compliance and restructuring.”
The end of an era for P2P trading
Their closure symbolises the end of an era for P2P crypto trading, which once dominated Bitcoin activity in Africa.
Growing regulatory pressure, particularly around AML and Know-Your-Customer (KYC) standards, has forced several similar platforms like LocalBitcoins to shut down or restrict operations.
Still, Paxful’s impact will not be forgotten. It was their first real connection to the global cryptocurrency economy for many Africans. The company’s mission, to build a borderless financial system for all, inspired a generation of traders, developers, and fintech entrepreneurs across the continent.
While Paxful’s chapter is closing, its legacy will live on through the next wave of decentralised and compliance-focused platforms shaping Africa’s digital finance future.