Learn how Paxful keeps our marketplace safe, how we respond to infractions, and how to appeal account restrictions, suspensions, bans, and freezes

Paxful is committed to providing a safe, simple and fair marketplace. These values have made Paxful the longest-running peer-to-peer marketplace in the world, with over 12 million users who rely on Paxful to grow their local businesses, send money internationally, or protect their savings under challenging economic conditions. Safety starts with understanding our Terms of Service, our de facto agreement with you when using Paxful products.

To further improve your experience on Paxful, this post aims to summarize what happens when things go wrong, including offering examples of behaviors that will lead to account restrictions; the various types of bans, freezes, and suspensions our team uses to enforce marketplace safety; and a simple explanation of recourse steps available to you to contest our restrictions.

Importantly: under no circumstances will Paxful staff ask for your private login information (such as your password or 2-factor authentication key), nor private cryptocurrency wallet information (specifically, your private key or seed phrase).

To contact support, view our support channel options here.

Why was my Paxful account restricted? 

We understand how frustrating it can be to find your account banned or restricted. These measures are never taken lightly and result from specific violations of Paxful’s Terms of Service or legal requirements. The following are some reasons why your account may have been restricted:

Restricted, Suspended, or Banned Due to Terms of Service Violations

Paxful’s Terms of Service are the guiding framework to ensure the platform remains fair, safe, and legitimate. Examples of violations include, but are not limited to:

  • Engaging in deceptive or fraudulent activities or scams (such as posting fake offers)
  • Attempting to manipulate the platform or its users (such as inflating feedback scores)
  • Using Paxful for activities that are illegal or prohibited by law.

If you violate the Terms, Paxful may cause your account to be restricted (meaning that certain account features may be disabled, such as buying or selling on the marketplace), suspended (temporary closure of the account), or banned (permanent closure of the account).

Before your account is closed permanently, you will have an opportunity to withdraw any remaining balance in your account unless otherwise prohibited by an account freeze.

Frozen Accounts for Legal or Compliance Reasons

On rare occasions, we might have to freeze an account or temporarily put it on hold because of legal or compliance-related obligations, usually in addition to suspending or banning the account. When an account is frozen or placed on hold, you will not have access to your wallet or funds in your account until the freeze or on hold status is lifted. Please note, an account freeze or hold may be joined by a second restriction, such as a suspension or ban. 

We must adhere to external legal and compliance requirements, as we are committed to operating within the bounds of the law and maintaining the highest standards of financial integrity. Such circumstances might arise from:

  • Government, court, or law enforcement orders or directives
  • Suspicion of involvement in money laundering or other illegal activities
  • Compliance with international financial sanctions and regulations

We also may impose a temporary freeze on your account if we detect suspicious activity. We do this to protect you and your funds by preventing further fraud. Once we are able to confirm that your account is not compromised, we will unfreeze your account.

Restriction nameRestriction termUser account accessPermitted actions
RestrictedTemporaryAccessibleLimited Access to Features
SuspendedTemporaryInaccessibleNone; may withdraw
BannedPermanentInaccessibleNone; may withdraw
On HoldTemporaryAccessibleNo wallet access
FrozenUntil legal & compliance issues are clearedInaccessibleNone

Appealing an Account Status Change

We acknowledge that misunderstandings can occur and your account might get restricted, banned, or frozen due to an oversight. In such cases, you have the right to appeal the decision until the account is deleted. 

To initiate an appeal:

  1. Reach out to our Customer Support team with your account details and any critical information regarding your case. This article explains how best to get in touch and ensure you’re talking with our team.
  2. Our team will review your appeal thoroughly and ensure that all facets of the situation are considered. We will analyze whether the account status change was properly imposed and factors such as the severity or frequency of the account’s violations.
  3. Once the review is complete, we’ll communicate our findings and any subsequent steps to you via our standard support channels.

Please note that in some cases, an applicable law or regulation will prevent us from explaining why we had to close or freeze an account. Also, if an account is frozen due to a legal or compliance reason, we may not be able to unfreeze the account unless we have received further instructions from the relevant authority. While we strive to respond to most support queries in 48 hours, in some instances we may take longer to handle an account status appeal due to the unique case-by-case nature of these restrictions.

We also conduct periodic internal reviews of restricted, banned, and frozen accounts, as we acknowledge that situations change and continuous review is essential to ensuring fairness and accuracy. This proactive approach ensures that accounts that no longer pose a risk to the platform or other users can have their restrictions lifted, if permitted under the law.

We’re here to help

It’s essential to all of us at Paxful that users like you feel safe and confident when using Paxful products. Our commitment to safety, simplicity, and fairness is how we earn your trust, and those of 12 million other users around the world. We’re vigilant about protecting your trust by being proactive, transparent, and consistently improving on our tools and practices across marketplace safety, customer support, and dispute resolution. 

If you have any questions, concerns, or simply want to understand any of our policies better, please contact our support team or join the Paxful community on Discord. Our global support team is standing by 24/7 to help you trade with confidence!