Originally published on June 5, 2020 and updated on February 4, 2025

---

If your Paxful account has been restricted, it can be due to security reasons or violations of our terms of service. The good news is that not all restrictions are permanent—but the steps you can take (if any) depend on the reason behind the restriction. To clarify: 

• Security measures: Paxful may temporarily restrict your account due to suspicious activity or to verify your identity. These issues are usually resolved by following the right steps.
• Terms of Service Violations: In cases of severe breaches, such as fraud or repeated policy violations, Paxful may permanently restrict your account. Unfortunately, these restrictions are irreversible.

Whatever the reason, the key is understanding why it can happen and—most importantly—how to prevent it from happening in the first place. Read on to learn the common causes of account restrictions and how to avoid them.

---

Key takeaways

• You can lose access to your Paxful account due to security or policy violations, geographic restrictions, or engaging in fraudulent activities.
• Paxful takes security seriously. If your account is flagged for suspicious activity due to security concerns or unusual trading patterns, Paxful can lock it and protect the platform and its users. 
• Sticking to Paxful’s terms and conditions is the best way to keep your Paxful account open. 

---

Why your Paxful account might be restricted

1. Geolocation lock 

Paxful takes security seriously, and one of its built-in safeguards is a geolocation lock. If you try logging in from a new location without two-factor authentication (2FA) enabled, your account could get locked for security reasons. You’ll need to verify your identity through email to regain access.

If you’ve recently moved to a new country where Paxful operates, you can unlock your account by contacting Paxful’s support team.

2. Geographic restrictions

Paxful complies with a variety of global regulations, which means that there are certain jurisdictions where we cannot offer our services. If you are located in an unsupported country, you won’t be able to sign up for an account with Paxful. Your access may also be limited if you reside in a supported country but happen to travel to one of the unsupported countries.

3. Fraudulent trade activities

Trust is the backbone of the Paxful marketplace. As such, an account could be restricted if we detect any shady trading behavior. Here are some actions that can get you into trouble:

• Canceling trades post payments: If a vendor asks to cancel a trade after you’ve already sent the payment, that’s a huge red flag. This tactic is often used in scams, like avoiding cryptocurrency release or attempting a chargeback fraud (where the scammer tries to reverse the payment after receiving the crypto). Paxful doesn’t take these situations lightly, and accounts involved in such activity will be restricted.
• Trading outside Escrow or moving conversations off-platform: Paxful’s escrow feature exists for a reason—it keeps trades fair and secure. If you attempt to complete a trade outside of escrow or move conversations to WhatsApp, Telegram, or email, you bypass essential security measures. This puts both parties at risk and violates Paxful’s policies.

If someone asks you to move the conversation off-platform, that’s a red flag. Scammers use this tactic to avoid security and carry out fraud. To stay safe, always keep trades and communication within Paxful.

• Chargebacks after payment: Once a payment is processed, it’s final—at least, it should be. If a buyer reverses a payment after receiving their cryptocurrency, it’s considered fraudulent behavior. Some people attempt this through bank chargebacks to get free crypto. Paxful won’t tolerate this, and accounts involved in chargeback fraud can face permanent bans.
• Coin locking:  Some buyers start a trade, mark the transaction as “Paid,” and then disappear—essentially holding the seller’s crypto hostage. This wastes time and disrupts legitimate trading, and it can even be used as a pressure tactic. Paxful considers this a serious violation, and any accounts engaging in this behavior risk being restricted.
• Exploiting or coercion: Deception, coercion, or improper means of gaining financial support—whether through unauthorized fund use or tricking people into giving up their assets—is a significant violation. Paxful takes these cases seriously and will shut down any accounts involved.

4. Severe violations against Paxful’s ToS

While minor issues might result in a temporary suspension, certain actions can lead to a permanent restriction. Here are some of the violations that will lock your Paxful account permanently.

• Having multiple Paxful accounts: Paxful doesn’t allow users to create multiple accounts. This gives an unfair advantage in the marketplace and can be used for fraud or manipulation. If Paxful’s system detects duplicate accounts, they’ll be flagged and restricted automatically—no warnings, no second chances.
• Using a fake identity or documents: Trying to verify your account with fake documents or a false identity is a guaranteed way to get locked out. Paxful has strict compliance checks, and any attempt to manipulate the verification process will be caught. If that happens, your account won’t be frozen—It will be permanently banned.
• Buying an account from another user: Thinking about skipping the verification process by purchasing an already-verified account? Bad idea. Not only is this against Paxful’s Terms of Service, but it’s also risky—there’s no guarantee that the account is legitimate or won’t be flagged later. If Paxful finds out, that account will be banned.

What to do if your Paxful account is locked, frozen, or banned 

If your account is locked, frozen, or on hold—there’s still a chance to regain access, depending on the situation. Here’s what each status means and what you can do about it:

• Locked account: This is usually temporary and happens when you log in from a new location or if Paxful detects suspicious activity. Your account is locked for security reasons, but you can often resolve it by verifying your identity. Check your email for instructions, or contact Paxful’s support team for guidance.
• Frozen account: A frozen account means you can’t buy, sell, or withdraw funds. This typically happens due to security concerns, compliance issues, or trade disputes. If this happens, check your email for details and contact Paxful Support to seek the next steps.
• Account on hold: Your account is under review for a set period. While you can’t trade during this time, you can withdraw your funds once the hold is lifted. If your account isn’t ID-verified, you must complete verification before withdrawing.

Please check your email for details and contact Paxful Support to see if an appeal is possible for one of the instances above.

🚫Unfortunately, bans are final and cannot be reversed: A permanent ban means you won’t be able to trade on Paxful again. However, in case you still have funds, you can make a one-time withdrawal of your remaining balance to an external wallet.

If you’re in a country where Paxful no longer offers services, you may need to contact support to assist you with your balance withdrawal.

How to prevent your Paxful account from getting restricted

Want to avoid the headache of a restricted Paxful account? Here are some key tips to help you avoid restrictions:

• Follow Paxful’s Terms of Service: Paxful has clear rules—read them, understand them, and most importantly, follow them. Breaking the rules (like trading off-platform, engaging in fraud, or manipulating trades) can lock or ban your account.
• Use the escrow system properly: Always keep your trades within Paxful’s escrow system—no exceptions. It is designed to protect all parties during a trade. Never mark a trade as “paid” until you’ve sent the payment.

• Communicate on Paxful: Avoid taking conversations off-platform (like WhatsApp, Telegram, or email).  Keeping everything within Paxful’s chat system ensures transparency and protects you in case of disputes.
• Don’t chargeback: Reversing a payment after a trade is completed is considered fraud, and Paxful doesn’t take it lightly. To avoid disputes, always use secure and reliable payment methods. Be honest and transparent, and communicate clearly with your trade partner—no tricks, no pressure tactics.

• Handle disputes the right way: Use Paxful’s dispute resolution system if a trade dispute happens—it’s there to help. To support your case, provide solid evidence (screenshots, transaction IDs, etc.). Stay responsive and cooperative during the dispute process.
• Keep up with Paxful’s policies: Paxful’s rules can change, so stay informed. Check our updates, follow our blog, or follow our social media for important announcements and best practices.

Avoiding an account restriction isn’t complicated—just play by the rules, be fair in your trades, and stay alert. If you keep things legit and secure, you’ll have no trouble keeping your Paxful account in good standing.

If you ever run into issues, check out Paxful’s Knowledge Base for answers or join the discussion on Reddit (r/Paxful) to connect with other traders and stay informed.

---

👉Additional readings

1. Paxful’s Safety Guide for Traders