Paxful, one of Nigeria’s most popular peer-to-peer (P2P) crypto marketplace has announced its exit from the crypto space by November 1, 2025.
For years, Paxful made it easy for Nigerians to buy, sell, and convert crypto to Naira using local payment methods like bank transfers and mobile money.
However, as Paxful winds down operations amid historical misconduct and unsustainable operational costs, users must now find trusted crypto platforms that still work in Nigeria.
In this guide, we’ll break down why paxful is shutting down, what to look for in a reliable crypto exchange in Nigeria, and the top 5 alternatives for fast and secure crypto to cash conversions.
What is Paxful & Why is it Shutting Down?
Paxful was one of the leading peer-to-peer (P2P) marketplaces globally, especially in Africa. It allowed users to sell Bitcoin and trade other stablecoins directly with others, using multiple payment methods.
Over time, it became a top choice in Nigeria’s crypto ecosystem, serving millions of users who relied on it to sell Bitcoin to Naira or convert crypto to Naira when other exchanges had limited fiat support.
Why Is Paxful Shutting Down?
Paxful winding down is not a sudden occurrence. Below are the critical factors and timeline that explain how it got here:
1. Historic Misconduct & Legal Fallout
Paxful’s management points to “historic misconduct” by former co-founders Ray Youssef and Artur Schaback as a root cause.
In 2024, Schaback pleaded guilty in U.S. federal court for failing to maintain a proper anti–money laundering (AML) program when he was CTO, covering roughly 2015–2019.
That case exposed structural compliance weaknesses, and Paxful says the remediation costs and legal risks from that legacy made operations unsustainable.
2. Escalating Compliance & Operational Costs
Paxful had to heavily invest in regulatory compliance, KYC/AML infrastructure, audits, legal teams, and system overhauls to remain legally compliant.
These were expensive burdens, especially for P2P platforms operating across jurisdictions.
3. Internal Turmoil & Staff Departures
In early 2023, Paxful suspended operations temporarily following internal conflict between co-founders, board issues, and the exit of key staff.
The platform re-launched after management restructuring, but the disruptions damaged trust and continuity.
4. Announcement of Shutdown
On October 1, 2025, Paxful officially announced it would wind down all operations by November 1, 2025. Users were urged to withdraw their balances before the cutoff date, as the platform would be inaccessible afterward.
The company points the closure to three combined causes: historic misconduct, unsustainable operational costs, and strategic decision to limit future liabilities.
What This Shutdown Means for Users in Nigeria
- Immediate fund withdrawal needed: If you still have crypto or fiat locked on Paxful, you must withdraw before November 1, 2025.
- Loss of a major P2P hub: Nigeria was one of Paxful’s largest markets, and its exit will affect many day-to-day P2P flows.
- Shift in liquidity & platform power: Trading volume will redistribute to other platforms, which may see surges in traffic and tighter spreads.
- Heightened regulatory pressure on P2P: Paxful’s collapse signals that P2P platforms without strong compliance foundations are vulnerable in 2025.
- Need for migration plans: Users should export transaction histories, backup wallet keys, and move funds to safer platforms early.
What Nigerians Should Look For in a Paxful Alternative
Now that Paxful is winding down, crypto users in Nigeria are searching for secure and convenient Paxful alternatives that still make it easy to buy, sell, and convert crypto into naira.
Here’s what every Nigerian should prioritize before switching to a new crypto platform in 2025:
1. Instant and Reliable NGN Withdrawals
With Paxful gone, users need platforms that offer fast crypto-to-naira withdrawals through mobile money or direct bank transfers. Platforms like Breet stand out here, as they allow users to instantly convert Bitcoin, USDT, and other tokens to naira.
2. Strong Security and User Protection
Platforms with multi-factor authentication (2FA), cold storage, and encrypted transactions reduce hacking risks, so every user should always prioritize security
3. Low Fees and Transparent Pricing
One major issue on Paxful was inconsistent P2P pricing and hidden charges. A good alternative should have transparent rates for conversions and trades.
4. Local Payment Compatibility
In Nigeria, the preferred payment methods are bank transfers, USSD, and mobile money wallets. Make sure your next platform supports these seamlessly.
5. Regulatory Compliance and Transparency
As the crypto space evolves, compliance matters more than ever. Select platforms that operate transparently and align with Nigerian or regional regulations.
Top 5 Paxful Alternatives for Nigerians in 2025
With Paxful officially winding down operations, here are the top 5 Paxful alternatives for Nigerians in 2025, selected based on reliability, transaction speed, security, and naira withdrawal options.
1. Breet – Best for Instant Crypto-to-Cash Conversions (NGN)
What It Is: Breet is an over-the-counter (OTC) crypto exchange app designed for Africans, especially Nigerians, who want to convert crypto directly to fiat without the risks of P2P trading. Users can sell Bitcoin, USDT, Ethereum, and over 170 cryptocurrencies, receiving instant payment in naira or cedis.
Pros:
- Instant crypto-to-naira conversion under 287 seconds
- Bank and mobile money integration
- Simple, beginner-friendly interface
- Has over 250k reliable users with over 300m trades executed
Cons:
- No staking options
Best For: Users who want a fast and secure way to sell crypto and get paid instantly in NGN.
2. Remitano — Reliable P2P Marketplace with Escrow Protection
What It Is: Remitano is a P2P crypto exchange operating across multiple countries, including Nigeria. It allows users to buy and sell Bitcoin, Ethereum, and USDT directly from peers, with escrow protection ensuring secure trades.
Cons:
- Higher transaction fees compared to competitors
- Fewer local liquidity providers
3. KuCoin – Best for Altcoin Variety
What It Is: KuCoin is a global exchange offering hundreds of tokens, including niche altcoins not available on other platforms. Nigerians can use KuCoin for trading, staking, and even earning through its referral program.
Cons:
- Doesn’t support direct NGN withdrawals
- Requires P2P or third-party methods to cash out
4. CoinCola — Trusted P2P Platform with Global Access
What it is: CoinCola is a P2P crypto trading platform that connects buyers and sellers directly. It supports Bitcoin, USDT, and other major cryptocurrencies, and offers multiple payment methods for Nigerian users, including bank transfers and mobile money.
Cons:
- Like Paxful, still relies on P2P transactions with risk of delays or disputes
- Lower liquidity compared to top exchanges
5. Bybit — Global Exchange with Instant Buy Options
What It Is: Bybit is a global crypto exchange known for its advanced trading tools, low fees, and user-centric design. It offers both spot and derivatives trading, but recently added P2P and fiat on-ramp services for Nigerian users looking to buy crypto with naira..
Cons:
- KYC verification required for full access
- More advanced interface for casual users
How to Choose the Right Paxful Alternative in Nigeria in 2025
Now that Paxful is shutting down, it’s important to know what makes a crypto platform safe, fast, and reliable in Nigeria’s current regulatory environment. With multiple options out there, here’s how to pick the one that fits your exact needs:
1. Prioritize Security and Reputation
Before creating an account, check if the platform has a proven security record, proper encryption, and two-factor authentication (2FA).
Avoid apps with constant withdrawal issues or unclear ownership.
- Look for Instant and Reliable Withdrawals
Your best bet is to go for apps that provide instant cash-outs to bank accounts or mobile money wallets.
For instance, Breet allows users to convert Bitcoin and USDT directly to naira in 287 seconds.
3. Check Supported Coins and Payment Options
The best crypto apps in Nigeria support major coins like BTC, ETH, and USDT, as well as stablecoins and local currency options.
- Understand Fees and Exchange Rates
Look for transparent platforms that have transparent exchange rates.
- Ease of Use and Customer Support
An intuitive interface and responsive customer support can determine your crypto experience. Choose a wallet or exchange that is easy to navigate, especially if you’re not a pro trader.
Final Verdict — Should You Still Use Paxful or Switch?
As of 2025, Paxful will no longer be available as a crypto exchange for Nigerians. The shutdown left many traders stranded, and even though peer-to-peer platforms have emerged since, most still struggle with fraud risks, delays, and transaction limits.
If your goal is to convert crypto to naira quickly, securely, and without disputes, switching to Breet is your smartest move.
Unlike traditional exchanges that rely on P2P sellers, Breet uses an automated over-the-counter (OTC) system to process crypto trades instantly, meaning you get your cash directly in your bank account in 287 seconds, with low transaction fees.
So if you’re still wondering “Is Paxful still working in Nigeria?”, the real question should be:
“Why stick with uncertainty when you can switch to Breet and enjoy fast, easy and safe crypto conversions today?”
Download Breet now to start converting your crypto instantly and experience what smooth trading feels like.
