Paxful Shuts Down: Full Details & Alternative for Nigerians

If you’ve been in the crypto space for a while, you’ve probably heard the news. Paxful is shutting down. The once-popular peer-to-peer platform that connected millions of buyers and sellers across Africa is finally closing its doors.

For many Nigerian traders who relied on Paxful for quick Bitcoin deals and flexible payment options, Paxful’s shut down feels like the end of an era.

The company says it’s winding down operations due to compliance challenges and legacy issues from its early management.

But for everyday users, the real question is simple: What happens to my funds, and where do I go next?

Let’s break down exactly why Paxful is shutting down, what it means for Nigerians, and the best alternatives you can safely switch to today.

Why Is Paxful Shutting Down?

When Paxful’s shut down news became the headline across crypto sites, many users were caught off guard. Paxful had built a strong reputation as one of the easiest ways to buy and sell Bitcoin using local payment methods. So, what went wrong?

According to the Company’s Official Statement, Here’s why Paxful is Shutting Down:

“Since 2015, Paxful has connected over 14 million users across 140+ countries as the world’s largest people-powered marketplace. We regret to inform our community that Paxful will wind down operations by November 1, 2025. This strategic decision follows the lasting impact of historic misconduct by former co-founders prior to 2023 and unsustainable costs from compliance remediation efforts. It is not due to insolvency or issues with our current leadership. Your funds remain secure, and we are committed to a smooth wind-down.”

The story actually started long before the final 2025 closure. Back in April 2023, Paxful suddenly paused operations, citing internal challenges and regulatory pressures. Behind the scenes, there was an ongoing legal dispute between the company’s co-founders, Ray Youssef and Artur Schaback.

Their conflict reportedly created uncertainty around leadership and control of user data, which made it difficult for the company to continue operating smoothly.

After a few months of partial recovery, Paxful resumed limited activity, but the cracks were already showing. Compliance demands became tougher, especially with global regulators tightening rules on peer-to-peer trading and anti-money laundering checks. Maintaining licenses, security systems, and legal teams proved expensive for a platform that depended heavily on small, peer-based transactions.

By October 2025, Paxful announced that it would officially wind down all services, giving users time to withdraw their funds before a complete shutdown on November 1, 2025. The company said the decision was not due to insolvency but to what it called “historic misconduct” and the high operational costs tied to rebuilding trust and compliance from scratch.

In short, Paxful is shutting down because the weight of its internal issues, legal battles, and mounting regulatory requirements became too heavy to sustain. What was once a community-driven trading hub simply couldn’t survive the combined pressure of lawsuits and compliance costs.

What Happens to Users’ Funds and Accounts?

Now that Paxful is shutting down, one of the biggest questions on everyone’s mind is what will happen to users’ money and accounts. The good news is that Paxful has made it clear in its official statement that “your funds remain secure, and we are committed to a smooth wind-down.”

However, there are strict timelines that users, especially those in Nigeria, need to follow to avoid losing access.

Let’s break it down according to the key dates Paxful published.

October 1, 2025 – No New Trades or Customers

From this date, Paxful stopped accepting new users and trades. Nigerians who still have crypto on their Paxful wallets should avoid making new blockchain deposits or starting new transactions. Instead, the company advises users to begin withdrawing their balances immediately.

Next step for Nigerian users:

Log in to your Paxful account and move your Bitcoin or Tether (USDT) to a trusted self-custody wallet like Trust Wallet or Blockchain.com, or withdraw directly to your exchange account (for example, Breet) for easier cash conversion.

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October 15, 2025 – Marketplace and Swap Features Closed

By mid-October, the Paxful marketplace and swap functionality were officially shut down. This means users can no longer post offers, match trades, or swap assets within the platform.

Next step for Nigerian users:

If you previously relied on Paxful for Bitcoin-to-naira swaps, switch to local platforms that offer instant conversions, such as Breet, which allow you to cash out directly to your Nigerian bank account.

October 31, 2025 – Apps Discontinued

Paxful also confirmed that both its Android and iOS apps will be discontinued by the end of October. Users can still access their accounts through paxful but will no longer be able to use the mobile app for withdrawals.

Next step for Nigerian users:

Use a desktop browser to log into Paxful and complete any remaining withdrawals. Always verify the official URL before entering your login details to avoid phishing scams, which are common around shutdown events.

November 1, 2025 – Final Withdrawal Deadline

This is the final date in the Paxful wind-down plan. After November 1, accounts with remaining balances will be allowed one last full withdrawal, after which all services will be closed permanently.

Next step for Nigerian users:

Do not wait until the last day. Withdraw your crypto early to avoid congestion or delayed confirmations. If you have trouble accessing your funds, contact Paxful support through their official website only, not social media pages or Telegram groups.

In summary, while Paxful is shutting down, users still have a clear and safe path to recover their funds.

The key is to act early, move your assets to verified platforms, and stay alert to scams pretending to help with withdrawals. Nigerian users in particular should focus on transitioning to reliable local exchanges that offer simple cash-out options in naira.

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Paxful Shut Down: Impact on Nigerian Crypto Traders

For many Nigerians, the news that Paxful is shutting down feels personal. Paxful was more than just a trading platform. It became a bridge between crypto and the traditional banking system during times when local exchanges faced restrictions or uncertainty.

Over the years, Paxful built a large and loyal Nigerian community. It allowed users to buy Bitcoin using local payment methods like bank transfers, gift cards, and mobile money, all in a peer-to-peer setup.

When other global exchanges limited naira transactions, Paxful stayed open, which made it a lifeline for small traders, freelancers, and remittance receivers.

Now that Paxful is winding down, there is a noticeable gap in the market. Nigerians who depended on the platform for flexible transactions will have to adjust to more centralized options. This change could reduce the sense of community and control that peer-to-peer trading offered.

There is also a trust issue. When a major name like Paxful leaves the market, it raises doubts about the stability of global P2P platforms. Many Nigerian users are already asking where to go next and whether new exchanges can truly guarantee long-term reliability.

On the positive side, the shutdown is pushing more people toward licensed and compliant Nigerian platforms. Exchanges such as Breet are filling the gap by offering instant conversions and regulatory transparency.

These services make it easier to convert Bitcoin to naira safely without worrying about escrow delays or scam traders.

Another ripple effect is that Nigerians are becoming more educated about self-custody. With Paxful closing, more users are learning to store their crypto in personal wallets instead of leaving it on trading platforms. This shift toward personal control could make the Nigerian crypto scene stronger in the long run.

In the short term, the fact that Paxful is shutting down will cause inconvenience and confusion, but it is also a wake-up call.

The Nigerian crypto community is adapting quickly, and this transition may lead to safer and more reliable systems that protect users better than ever before.

Breet: The Best Paxful Alternative for Nigerians

With Paxful shutting down, many Nigerians are searching for a reliable and stress-free way to keep buying and selling crypto. Among all the options available, Breet stands out as the best Paxful alternative for Nigerians who value simplicity, speed, and security.

Unlike traditional peer-to-peer platforms, Breet eliminates the need to chat, negotiate, or wait for a buyer. It is a fully automated crypto-to-cash conversion app that lets users instantly sell their Bitcoin, USDT, Ethereum, or other supported coins and receive naira directly in their bank account.

This automation removes human error, scams, and the stress of dealing with unreliable traders, which were common problems on peer-to-peer marketplaces like Paxful.

Here’s why Breet has become the go-to choice for Nigerian crypto users:

• Instant Payments: Once you send crypto to your Breet wallet, it converts to naira and pays you within 287 seconds or less. No need for confirmations from a buyer or seller.
• Best Market Rates: Breet constantly updates its exchange rates, ensuring you get competitive conversion values for their crypto.
• Zero Transaction Hassle: There are no hidden charges or long verification waits. The process is quick, smooth, and beginner-friendly.
• Multi-Coin Support: Beyond Bitcoin, you can also sell USDT, Ethereum, Litecoin, Dogecoin and several Cryptocurrencies.
• High Security: Breet uses advanced wallet encryption and two-factor authentication to protect user accounts and funds.
• Seamless App Experience: The mobile app, available on Android and iOS, offers a clean interface that simplifies crypto cashouts whether you’re a new or experienced user.
• Active Nigerian Support: A responsive support team helps you resolve any issues quickly through in-app chat and social channels.

For Nigerians who depended on Paxful for liquidity, Breet offers a smooth and dependable transition. It keeps the convenience of fast conversions while removing the risks of peer-to-peer trading.

In a period when Paxful is shutting down and traders are seeking stability, Breet provides a modern solution that fits perfectly into Nigeria’s evolving crypto landscape.

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Conclusion on Paxful Shut Down

The news that Paxful is shutting down marks the end of a major p2p chapter in Nigeria’s crypto story. For many, it’s a reminder that even trusted global platforms can change direction overnight. The best move now is to stay proactive, withdraw any remaining funds, and transition to reliable local solutions.

If you’re looking for a simple and secure way to keep trading, Breet offers everything Paxful users loved, only faster and safer.

Frequently Asked Questions on Paxful Shutting Down

Is Paxful Still Working in Nigeria?

No, Paxful is no longer active in Nigeria or any other country. The company announced that it will completely wind down operations by November 1, 2025. Nigerian users can still log in to withdraw their funds before the final closure but cannot make new trades or deposits.

Has Paxful Shut Down?

Yes, Paxful is shutting down gradually. The marketplace and swap features have already been disabled, and all services will fully close by November 1, 2025. Users are advised to withdraw their crypto to personal wallets or trusted platforms as soon as possible.

What Replaced Paxful?

While no single company officially replaced Paxful, many Nigerian traders have switched to Breet, a fast and secure crypto-to-cash app that automates conversions and deposits naira directly into your bank account. It offers a simpler and safer alternative to peer-to-peer trading.

Why is Paxful Banned?

Paxful was not officially banned by any government. The company itself decided to shut down due to internal disputes between its former co-founders, compliance costs, and the impact of past management misconduct. It clarified that the decision was not due to insolvency or regulatory suspension.