Bitcoin marketplace Paxful to shut down, two months after LocalBitcoins closure as P2P market dwindles

Paxful, a peer-to-peer bitcoin marketplace, is shutting down its marketplace — and might not return at all. The platform is closing down following some “key staff departures” and challenging regulatory conditions for the industry. “While we work through these issues, we have taken the most secure option and ask you to explore self-custody and trade elsewhere,” Youssef said. Youssef also claimed during a Twitter Space event on Tuesday that a lawsuit filed by a Paxful co-founder “drove away all of the senior-level team.”. Customer funds are all accounted for, according to the post, and Youssef encouraged users to withdraw them, recommending self-custody options. Paxful is also offering “easy migration” to other options for non-U.S. users, to platforms like Noones, a new peer-to-peer platform “dedicated to the global south.” This is in contrast with more traditional crypto exchanges, which facilitate trading between buyers and sellers.