Case Study: Paxful Achieves Stronger Compliance and Safer Growth with Chainalysis

Paxful builds world-class compliance with Chainalysis

Paxful, a peer-to-peer finance platform for buying and selling cryptocurrency, wanted to strengthen its compliance program and improve blockchain analytics alerts as it grew. To support its mission of providing safe, customer-first access to finance, Paxful needed a reputable blockchain analytics partner and evaluated providers for better alerting and more identified clusters. It chose Chainalysis and began using Chainalysis KYT, Reactor, Kryptos, and Business Data.

With Chainalysis, Paxful built custom controls to identify and block transactions to risky bitcoin addresses, helping reduce fraud and improve overall risk management. The company reported that its risk exposure declined significantly and reached levels comparable to the top 50 exchanges, while a custom blocking tool helped drive a 50–60% drop in fraud shop exposure from 2019 to 2020. Paxful says Chainalysis has enabled safer growth, stronger customer trust, and a more effective compliance program.

Paxful

Frank Nonnenmacher

Deputy Chief Compliance Officer