Paxful admins are stealing peoples bitcoins. How do I sue?

[Paxful_is_a_scam]

Paxful banned my account over a year ago for accidentally marking a $30 payment complete. Even though I canceled the trade after I realized my mistake a moderator still perm banned me an hour after I canceled the trade and they have been refusing to let me withdraw my balance for the last year now. Below is a reddit post I made about this showing multiple other people who also had Paxful admins steal their bitcoin

https://www.reddit.com/r/Bitcoin/comments/f35kc0/bitcoin_exchange_paxful_stealing_peoples_bitcoin/

Edit: After over a year and blasting them on social media they finally let me withdraw my bitcoins. Case closed.

[joniboini]

It is obviously not 'legal' and 'ethical', but you'll need a lot of time & effort (possibly money too) to bring the case to a court. Where did you live? You probably want to consult your local law enforcement officer especially if Paxful is also on your jurisdiction.

[exstasie]

Over a year ago my Paxful account was permanently banned without reason and they have refused to let me withdraw the bitcoins in my wallet. I have contacted their support via live chat and email multiple times for the last year and they continue to ignore me. I did some research and there are multiple other stories on this site and reddit of people having the same thing happen to them. Below is the reddit post I made about this showing the multiple other victims of these scam artists.

https://www.reddit.com/r/Bitcoin/comments/f35kc0/bitcoin_exchange_paxful_stealing_peoples_bitcoin/

Can anyone help me sue this fraud company in claims court?

Over $200? Well, they're incorporated in Delaware: https://icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx

7385758    PAXFUL HOLDINGS, INC.
5786843    PAXFUL, INC.
7453691    PAXFUL USA, INC.

As far as I know, they operated from New York for years, possibly still do.
https://www.builtinnyc.com/company/paxful
https://www.glassdoor.com/Overview/Working-at-Paxful-EI_IE2191935.11,17.htm

What country are you in? If you're not in the US, I'd forget about it.

In fact, unless you can find an address for service of process besides the ones in Delaware, you'd probably have to sue them there. The court filing fee would be $35: https://courts.delaware.gov/help/fees/jpfees.aspx

[Paxful_is_a_scam]

Over a year ago my Paxful account was permanently banned without reason and they have refused to let me withdraw the bitcoins in my wallet. I have contacted their support via live chat and email multiple times for the last year and they continue to ignore me. I did some research and there are multiple other stories on this site and reddit of people having the same thing happen to them. Below is the reddit post I made about this showing the multiple other victims of these scam artists.

https://www.reddit.com/r/Bitcoin/comments/f35kc0/bitcoin_exchange_paxful_stealing_peoples_bitcoin/

Can anyone help me sue this fraud company in claims court?

Over $200? Well, they're incorporated in Delaware: https://icis.corp.delaware.gov/Ecorp/EntitySearch/NameSearch.aspx

7385758    PAXFUL HOLDINGS, INC.
5786843    PAXFUL, INC.
7453691    PAXFUL USA, INC.

As far as I know, they operated from New York for years, possibly still do.
https://www.builtinnyc.com/company/paxful
https://www.glassdoor.com/Overview/Working-at-Paxful-EI_IE2191935.11,17.htm

What country are you in? If you're not in the US, I'd forget about it.

In fact, unless you can find an address for service of process besides the ones in Delaware, you'd probably have to sue them there. The court filing fee would be $35: https://courts.delaware.gov/help/fees/jpfees.aspx

That is the part I'm confused about. I hear everyone say they have a virtual office in Delware with physical location in Estonia and I also hear people say they are based in New York so i'm not sure the specifics I would need to use for a small claims case.

I am A US resident so I will have no problem with filing the claim just want to make sure I do everything correctly. Any other tips for the actual claim?

[LeGaulois]

That is the part I'm confused about. I hear everyone say they have a virtual office in Delware with physical location in Estonia and I also hear people say they are based in New York so i'm not sure the specifics I would need to use for a small claims case.

I am A US resident so I will have no problem with filing the claim just want to make sure I do everything correctly. Any other tips for the actual claim?

They do have different locations, probably to be able to operate in several areas... The Delaware registration is just to avoid paying taxes (like all companies registered there) in the links posted by @extasie, however, it's mentioned Estonia on Glassdoor and the US. on BuiltinNYC.
The

On the website itself, it's explained they have offices in New York in the United States, Hong Kong, Tallinn in Estonia and Manila in the Philippines.
https://paxful.com/fr/about

Since you're a citizen in the US. I would say you may have a better chance to sue them and get a positive result other than if you were not

[exstasie]

That is the part I'm confused about. I hear everyone say they have a virtual office in Delware with physical location in Estonia and I also hear people say they are based in New York so i'm not sure the specifics I would need to use for a small claims case.

Their listed PMB address is their registered agent for service. It belongs to Delaware Business Incorporators, Inc.
https://www.delawarebusinessincorporators.com/

You should be able to legally serve them there, because unlike PO boxes, there is someone present during business hours to sign for the papers.

I am A US resident so I will have no problem with filing the claim just want to make sure I do everything correctly. Any other tips for the actual claim?

Not really. I don't know the exact type of claim or how the process works, especially in Delaware. I assume you need to be physically present on the trial date. You need to serve them at a known, registered physical address otherwise your case will thrown out for improper service. That's why I wouldn't worry about New York or Estonia, etc.

Other possible registered addresses based on their filings:

PAXFUL, INC.
C/O BUSINESS FILINGS INCORPORATED
108 WEST 13TH ST
WILMINGTON, DE 19801

PAXFUL USA, INC.
C/O CAPITOL SERVICES, INC.
1675 S STATE ST STE B
DOVER, DE 19901

PAXFUL HOLDINGS, INC.
C/O CAPITOL SERVICES, INC.
1675 S STATE ST STE B
DOVER, DE 19901

[bitmover]

One important thing yo consider is: why was your account banned?
Did you get that bitcoin in online casinos, or something like that?

I am  not defending them, but maybe you could have done something illegal in their jurisdiction., and this may makes things difficult for you.

[Darker45]

Not defending the site here either as it has its own share of negative reviews but I guess any legally registered site won't freeze or ban accounts randomly or even subjectively.

Having said this, OP, have you tried reading their TOS for possible violation or breach of whatever contract or agreement that you may have unknowingly agreed upon opening your account there?

If the amount involved is very significant to you, the best thing to do is to consult a lawyer to review everything and provide you options on the next best legal step. If the amount involved is not that big, I guess going through legal action will only incur additional expenses on your part. Creating a ticket and repeatedly reaching out to them through all of their support mechanisms may be better.

[Paxful_is_a_scam]

BUMP PROOF ADDED