Domain Due Diligence
Report for Paxful.com
Why we think so?
Paxful.com is a popular peer-to-peer cryptocurrency marketplace with substantial global traffic, especially from the US, India, and Nigeria. It is built on reliable infrastructure using providers like Cloudflare and Amazon, and employs solid web technologies and security measures, including a valid SSL certificate. However, the platform has been linked to serious legal and customer disputes. Notably, in 2024, a co-founder pleaded guilty to failing anti-money laundering controls, leading to criminal repercussions. Many user reports detail account freezes, scams by other users, biased dispute resolution, and regulatory warnings labeling Paxful as unlicensed or risky. Despite official trademarks and active social media, these repeated complaints and legal issues raise significant safety concerns.
Risk Insights
Serious AML Violations
- Co-founder convicted for failing to implement anti-money laundering safeguards.
- Platform used by criminals for illicit activities.
- Legal risks jeopardize user funds and trust.
High User Complaint Volume
- Widespread reports of scams and frozen accounts.
- Biased dispute resolution noted.
- Users face difficulty withdrawing funds.
Robust Technical Setup
- Strong infrastructure with Cloudflare and Amazon hosting.
- Valid SSL certificates ensure secure connections.
- Use of trusted tech frameworks.
Contradictory Signals
While Paxful appears professionally established and technically sound, serious legal and reputational issues undermine user safety.
Signal A: Strong technical infrastructure and trademarked business identity
Signal B: Widespread user reports of fraudulent experiences and AML-related legal actions
Category Scores
Red Flags & Warnings
- Criminal guilty plea by co-founder for anti-money laundering failures leading to misuse for illicit activities.
- Numerous verified user complaints of scams, account freezes, biased dispute resolution, and lost funds.
- Regulatory warnings labeling Paxful as potentially unlicensed and illegal in some jurisdictions.
🔎 Detailed Checks & Analysis
Domain and Business Identity
Score: 70/100
Domain and Business Identity
"Trademarks registered since 2017 and active social media accounts reflect legitimate business presence."
Reason: Paxful has registered trademarks and corporate entities with verified ownership, indicating an established business identity.
Technical Infrastructure and Security
Score: 85/100
Technical Infrastructure and Security
"Stable domain DNS records and several reputable tech providers indicate sound technical setup."
Reason: Uses robust technologies like Cloudflare, Amazon hosting, valid SSL certificates, and popular web frameworks, supporting technical credibility.
Reputation and User Feedback
Score: 20/100
Reputation and User Feedback
"Multiple complaint databases and detailed user analyses highlight systemic issues with user protection."
Reason: Significant user reports describe scams, account freezes, and poor dispute resolution, damaging reputation and trust.
Legal and Regulatory Compliance
Score: 15/100
Legal and Regulatory Compliance
"Recent legal actions and regulatory warnings represent major compliance failures impacting safety."
Reason: A co-founder pled guilty to AML compliance violations; regulators have issued warnings about the platform’s licensing and risk status.
Content and Information Transparency
Score: 60/100
Content and Information Transparency
"Site details and official support information are accessible; however, negative user feedback reveals shortcomings."
Reason: Official website and social media provide transparent company and service information, but user experiences suggest gaps in actionable disputes resolution.
Your Next Steps
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1
Avoid using Paxful for cryptocurrency transactions due to serious AML and scam risks.
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2
If you have funds or accounts with Paxful, monitor them closely and be prepared for limited support.
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3
Report any suspicious activity or fraud encountered on Paxful to appropriate regulatory authorities.
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4
Use only regulated and licensed cryptocurrency exchanges to protect your assets.
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5
Stay informed about legal developments regarding Paxful and its founders.
Evidence & Citations
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Paxful co-founder pleads guilty to AML violations
Official DOJ press release confirming guilty plea for anti-money laundering failures.
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Paxful Reviews Indicate Fraud and Customer Complaints
Independent report summarizing numerous user complaints about scams and frozen accounts.
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Domain Dispute Decision Favoring Paxful Holdings
Official arbitration ruling confirming legitimate domain control by Paxful Holdings.
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Reputation and Safety Analysis by BrokerChooser
Expert brokerage safety assessment highlighting unregulated status and risks.
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Paxful Business Profile and Tech Stack
Technical data showing reputable hosting and infrastructure providers used by Paxful.
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