PANAMA CITY, Dec. 16, 2025 (GLOBE NEWSWIRE) -- Paxful announces agreements with the United States Department of Justice (DOJ) and the Financial Crimes Enforcement Network (FinCEN) to resolve longstanding investigations concerning historic conduct prior to 2023, during the tenure of former Paxful co-founders. Paxful has pleaded guilty for its conduct under the former leadership. The court has set a date of February 10, 2026, for the parties to next appear to address Sentencing.
Paxful acknowledges and unequivocally condemns its past actions and the past actions of the former co-founders, which are wholly inconsistent with the company’s values and ethical standards under new ownership. Throughout the investigative process, Paxful cooperated with both the DOJ and FinCEN, assisting in clarifying the circumstances surrounding the conduct of the former founders.
These agreements clearly substantiate the rationale behind Paxful’s recent wind-down announcement. The persistent repercussions of the former founders’ actions, coupled with the intensive compliance enhancements required to address them, has created an untenable path forward for a non-U.S.-based entity like Paxful.
At the same time, these agreements represent a critical milestone for Paxful, closing a difficult chapter in its history tied to the actions of past leadership and reinforcing its unwavering commitment to compliance, transparency, and ethical practices.
While Paxful is no longer conducting business, it remains fully committed to the safe and timely return of any remaining user funds.
About Paxful
Paxful, once the world's largest people-powered marketplace, connected over 14 million users across 140+ countries, enabling them to move, earn, save, and store money since its founding in 2015. As a pioneering borderless peer-to-peer payment network, Paxful offered access to the global economy through cryptocurrencies, supporting over 400 payment methods for buying and selling Bitcoin, USDT, and other digital and local currencies.
CONTACT: For inquiries related to this announcement please contact: legal@paxful.com Law Firm: Esseks Ingoglia 350 5th Avenue The Empire State Building New York, NY 10118 contact@esseksingoglia.com 212-358-4343 FinCEN: Enforcement Action Number 2025-02 DOJ: United States v. Paxful Holdings, Inc., 2:25-cr-00235, (E.D. Cal.). Media Contact Information Paxful Team legal@paxful.com
