Nearly everywhere in the world, fraud is an issue that companies of all sizes experience. It doesn’t matter if a business is booming or the economy is strong—there are, unfortunately, evil people who try to ruin someone else’s day by committing fraud. 

Here at Paxful, your safety and the security of your money is at the top of our priorities, which is why we want you to know what we’re doing in the fight against fraud. 

Paxful complies with laws and regulations

Back in the day, the Bitcoin space used to be referred to as the “Wild West.” Although some may argue that it’s still just as wild, the space has really evolved over the past few years. More rules and Bitcoin regulations have been put in place, making it a safer and more convenient space for everybody. 

As a platform in this space, we want to ensure everyone that we follow all applicable laws and regulations. This is why we have a strict AML policy and why we can’t serve certain countries. We have a world-class compliance team making sure that we, as a financial platform, play our part in making the cryptocurrency space safer and more secure. 

What we do to keep the platform safe

As early as possible, we try to identify the bad actors and squash whatever plans they have. We can do this by suspending, locking, freezing, banning, or putting accounts on hold, allowing us to keep all the bad actors from reaching any honest users on the platform. All of these restrictions on an account differ greatly depending on the situation. 

Suspended accounts

When we suspend an account, we restrict the user from accessing their Paxful accounts, meaning that there has been a clear violation of our Terms of Service (ToS), and we deem the account dangerous. Make sure that you read our ToS carefully and trade responsibly because the action of suspending an account is irreversible. 

Locked accounts

On the other hand, if an account is locked, it’s more of a temporary security measure. It may be because a user logged in from a new location or because we detected suspicious activity. In that case, we lock the account in question until we can confirm their ownership and identity. If your account ever gets locked, check your email for any messages from us and look for a link that you can click to unlock your account. 

Frozen accounts

When an account is frozen, it means that transactions such as buying, selling, or withdrawing funds are temporarily unavailable for a user. If your account gets frozen and you want to know how to unfreeze your account, check your email for more information, and then contact us to figure out the next steps. 

Banned accounts

If an account is banned, it’s permanently restricted from buying and selling again on the platform. However, the account owner will be able to make a one-time withdrawal of all the funds on the wallet and send it to any wallet address they chose. Just like a suspended account, a banned account cannot be unbanned, so if you’re wondering how to recover a banned Paxful account, you can’t. 

Accounts put on hold

Similar to when accounts are frozen, an account that’s put on hold is restricted in what it can do, at least for a while. Once that period expires, the account owner will need to confirm their identity before they get access again. 

Together, these account restrictions help make the platform a safer place for everyone by keeping all the bad actors away. 

Keeping a safe trading environment

By putting restrictions on the accounts that we deem suspicious, we protect our honest users from bad actors on the platform. These are people who use multiple Paxful accounts, fake identities, accounts from OFAC-banned countries, and people who unethically misuse our wide variety of payment options. 

As we mentioned earlier, the fight against fraud is an issue that all companies face, including Paxful. Help us restrict these dangerous accounts and keep the platform safe by letting us know if you encounter a user who is:

  • Selling crypto and then asking you to cancel the trade after the payment has been made
  • Asking to trade outside of escrow by communicating through other messaging applications
  • Reversing the payment or making a chargeback after the payment has been processed
  • Holding your cryptocurrency in escrow without having any intention of completing the trade
  • Trading with a single gift card multiple times or trading gift cards that have already been used
  • Tricking or forcing you to immediately release the crypto from escrow without completing the trade

By reporting them immediately, we can restrict their accounts so that the platform stays safe. 

Doing your part

In the entirety of Paxful’s fight against fraud, we’ve been battling hard and using every resource in our power to ensure your safety. We’re never going to stop fighting for that, but it doesn’t mean that you can’t do your part as well. 

If you ever see someone violating our Terms of Service, please contact us or report them immediately. Additionally, we’d love to hear your feedback and suggestions on how we can make the platform even safer, so don’t hesitate to reach out and let us know. 

The fight against fraud is a tough one, but it’s very far from being unwinnable. As long as we remain vigilant and on the same page, there’s no doubt in our minds that we will win this fight. Let’s make crypto safe for everyone, together.