Sometime this year, Paxful launched the “Did You Know” campaign, which was carried out to enhance the learnings about bitcoin, the cryptocurrency world as a whole, and all about Paxful’s platform, including the terms and conditions of Paxful, the potential penalty for violating any of the terms of service.
The community of bitcoin trading opens doors to new opportunities, duties, and risks. Operating your business on a peer-to-peer (P2P) marketplace is also not easy at all. In their strong will to keep the platform safe, Paxful could restrict access to the account of certain users.
In this article, we’ll be looking into the logical reasons and activities that could lead to one’s Paxful account getting frozen.
Reasons Your Account Is Frozen On Paxful
Geolocation lock on User Accounts
A common reason is the Geolocation lock on User Accounts. Paxful has enabled this additional tier of security to protect its users and their bitcoin. If you log in from any new location without your two-factor authentication enabled, your Paxful account will be automatically locked for security reasons. You will need account confirmation and approval via email to be able to access the account again.
OFAC sanctions
Another possible reason is the limitation of entry to the platform due to its obedience towards OFAC (the Office of Foreign Assets Control) sanctions. This means that users and traffic from selected jurisdictions are restricted from using Paxful’s services. These countries include Burundi, Central African Republic Sanctions, Cuba, Crimea region, Iran, Iraq, Lebanon, Libya, North Korea, Somalia, South Sudan-related Sanctions, Sudan and Darfur, Syria, and Yemen.
Numerous violations of Paxful’s terms of service
There are many fraudulent activities and more serious violations against Paxful’s Terms of Service that can lead to your account being frozen, you need to have the terms of services at the back of your palm to avoid any unnecessary restrictions on your account.
Having multiple Paxful accounts
Paxful is a platform that values its users and the safety of all trades. It does not allow users to have multiple accounts on the platform, because this is an unfair benefit in the natural competition of the market. When such cases are detected in Paxful’s system by the moderators, the duplicate accounts will be automatically frozen
Using a fake identity or falsified verification documents
The penalty for using a false identity or falsified documents to verify your Paxful account or trade requirements can lead to your account being frozen. Paxful’s system algorithm and observation team will be able to detect and identify these fraudulent account verification attempts.
Any account that is flagged for any suspicious activity stated in the company’s terms of service, would be locked or frozen to prevent any criminal action, as Paxful reserves the right to do so.
Having a pending trade dispute
The most common reason for a frozen account is having a trade dispute to be resolved. A dispute is any misunderstanding or conflict between two parties within a trade. On Paxful, when a dispute emerges, a moderator will step in to settle it. It is required that both parties should be online and active while the dispute is being settled. Contrarily, the users’ accounts will remain frozen.
Various fraudulent trade activities
Other forms of fraudulent activities that can lead to account restriction include:
- Vendors asking for termination of the trade after the payment was completed
- Conducting a trade-off escrow
- Chargebacks or invalidating the payment after it has been processed
- Coin locking or holding a seller’s bitcoin in escrow without prior intention to make the payment.
- Unauthorized use of gift cards, such as selling used gift cards
- Compelling or duping a trade partner to immediately release their bitcoin
- Manipulating to receive financial support through the unauthorized or improper use of funds.
The above points are the most common reasons why your Paxful may be frozen. You can also contact thePaxful help center for more assistance.
FAQs
For your safety and to prevent fraud, we may temporarily freeze your account if we detect any suspicious activity. Once we confirm that your account is secure, we'll promptly lift the restriction.
How do I unlock my Paxful account? ›
What to do? Check your inbox for an unlock link. Click the link and continue using our website. If you are still unable to access your account or have not received an email with a link from Paxful, please let us know the error message or send us a screenshot so we can help you with it.
What happens when my Paxful account is banned? ›
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.
Where is Paxful blocked? ›
Restrictions For Customers in Some US States and Territories
Due to regulatory restrictions, Paxful is unable to offer services to individuals located in the following States and Territories: Alaska. Arkansas. California.
How can I reactivate my Paxful account? ›
When your account gets deleted, you can write to our support team using Paxbot on our website, paxful.com, to request an account reactivation. They will provide you with instructions to regain access to your deleted account and get back to using Paxful again.
Why is my Paxful account frozen? ›
For your safety and to prevent fraud, we may temporarily freeze your account if we detect any suspicious activity. Once we confirm that your account is secure, we'll promptly lift the restriction.
How can I contact Paxful? ›
To Connect with Paxful Support:
Visit our Knowledge Base and click the Paxful icon in the bottom-right corner of the page. You can chat with PaxBot, our Virtual Assistant, or select "Help Articles" to learn more about our processes. If you select "Contact Us," you'll be greeted by our helpful virtual assistant.
Is Paxful allowed in the USA? ›
Paxful is protected with vault-level security and regulated in the United States as a Money Services Business. The marketplace is strictly monitored by our army of analysts and users are verified to ensure a safe trading environment.
How do you know if someone blocked you on Paxful? ›
Conversation. If you are unable to send messages to another party, it means they have blocked you. The only way you can continue chatting with the other party is if a dispute has been opened.
How do I report a problem on Paxful? ›
If you need to connect with Paxful support, head over to the Paxful Knowledge Base and click the Paxful icon at the bottom right corner of the page. Next, select Contact Us to chat with the Paxbot chatbot assistant to get help with concerns about your account or transactions. To start, fill in your Paxful username.
Paxful paused the marketplace for a month in 2023, and is back under new leadership – with reinvented products, safety, and support.
Can your Paxful account be hacked? ›
Don't interact with users posing as Paxful customer support. Cybercriminals are always on the prowl and are looking for every means to hack your account, including emails.
How to spot a scammer on Paxful? ›
On Paxful, there are a few red flags you'll need to look out for. This includes being rushed to complete trades, fake proof of transactions, coin locking situations, payment reversals, and phishing attempts.
How can I get my Paxful account back? ›
If this happens, click "Trouble logging in?" when you're asked to enter your 2FA code. From there, we'll ask you some questions, and we'll see how we can help. If you need any assistance from our Support team, do not hesitate to contact us. Check out this article on How to Contact Support.
Why is my Paxful not working? ›
Restart your app. Make sure you are connected to the internet (do a speed test to confirm). Make sure the app is in the latest version. Please open the app in the Google Play Store or the App Store and download the updates, if any.
Can I have two Paxful accounts? ›
Having multiple Paxful accounts
On Paxful, we highly value our users and the safety of all trades. We do not allow users to have multiple accounts on our platform, as this is an unreasonable advantage in the natural competition flow of the market.
How do I unlock my Bitcoin account? ›
If you have lost access to your Bitcoin wallet, here are some methods you can try to potentially regain access: Recovery Phrases or Seed Phrases: Many Bitcoin wallets use recovery phrases or seed phrases, which are a sequence of words that can be used to recover the private keys.
Why is my Bitcoin account locked? ›
Causes of Cryptocurrency Locked Accounts
Security Measures: Some exchanges or wallets implement stringent security protocols triggering account locks due to suspicious activities or unauthorized access attempts.
Can I withdraw money from my Paxful account? ›
After verifying your address, your limit gets lifted, and your maximum withdrawal amount becomes unlimited. Paxful withdrawals may take up to 24 hours to process. Luckily, Paxful lets you know when withdrawal requests are processed.
Why can't i verify my ID on Paxful? ›
The information on the document should match the information provided on the form. If your document is written in a language that does not use Latin characters, you may still use it for verification. If your native language is not yet supported by our verification provider, you will receive a message: Unsupported ID.
