Paxful Reopens Bitcoin Marketplace After Shutdown
Popular peer-to-peer (P2P) Bitcoin trading platform Paxful has resumed operations a month after it suspended services in April 2023. During the closure, the Paxful Wallet remained active, allowing users to access and withdraw funds.
In a blog post on May 8, the company announced its return, thanking users for their patience during the suspension period.
“We know it has been a difficult time for many of our users, who were understandably surprised by the sudden suspension,” the company stated. “We are delighted to be back so that we can continue to serve millions of people without financial access.”
The Turbulent Suspension Period
Paxful’s temporary shutdown in April shocked many in the crypto community, given its prominence as one of the largest P2P Bitcoin marketplaces with over six million global users.
Co-founder and former CEO Ray Youssef cited multiple reasons for the closure, including regulatory pressure on the P2P market, key staff departures, and an internal legal dispute with co-founder Artur Schaback.
Youssef described the litigation as “nasty,” noting that Schaback sued both him and the company out of frustration, which ultimately contributed to the platform’s halt.
Restoring Trust and User Funds
Despite the turmoil, Paxful managed to unfreeze 88% of customer accounts before fully resuming its marketplace. However, around 3% of accounts remain frozen as the company continues to resolve pending cases.
Youssef also made headlines during the shutdown for personally refunding affected users to avoid potential legal consequences. On April 18, shortly before the marketplace revival, he announced his resignation as CEO.
Moving Forward
The reopening of Paxful marks a key recovery moment for the P2P crypto space, which has been under pressure from tightening regulations and compliance demands. With its services back online, Paxful aims to rebuild trust among traders and continue expanding access to global financial inclusion through Bitcoin.
