Customer Story Paxful logo

Paxful builds world-class compliance with Chainalysis

  • Our risk exposure has declined significantly through our use of Chainalysis. We are now on par with the top 50 exchanges.
  • We built a custom tool utilizing Chainalysis where we’re able to block transactions outside of our risk appetite. With this logic, we’ve seen a 50-60% decline in fraud shop exposure based on week-by-week data from 2019 to 2020. When you look at the data right around January 2020, you can start seeing the decline of our average weekly exposure to fraud dropping by about 50-60%. It’s an effective control to help us improve our entire program.

We chose Chainalysis due to them being the best of breed in coverage of data and forensic investigation tooling. Chainalysis has been a huge game-changer for us.

Having a strong compliance program, enabled by Chainalysis, helps steer the company in the right direction. There’s a lot of risks, especially in the crypto industry. We want to use our compliance program to guide Paxful and help bring finance to the rest of the world.”

-Frank Nonnenmacher, Deputy Chief Compliance Officer, Paxful

About Paxful

Founded in 2015, Paxful is a leading peer-to-peer finance platform for people to make payments, transactions, and send money by buying and selling cryptocurrencies as a means of exchange for its 7 million customers globally, across 400 different payment methods. 

The Challenge

The Paxful team wanted to improve its blockchain analytics alerts and be on the cutting-edge of analytics, to support its mission in being a customer-first company that prioritizes safety for all customers. It needed a reputable blockchain partner to realize that vision.

The Solution

Paxful selected Chainalysis due to its strong industry reputation and its superior offering of alerts and identified clusters, which outperformed competitors during evaluation. Paxful onboarded Chainalysis Know Your Transaction (KYT), Chainalysis Reactor, Chainalysis Kryptos, and Chainalysis Business Data to move its compliance program forward.

Using Chainalysis has helped build trust in the industry and with our customers.”

Why were you seeking a solution provider?

We wanted to improve our blockchain analytics alerts and be on the cutting-edge of analytics. It was one of our top 5 initiatives to tackle at the time, back in 2018. That’s why we started to look for a reputable provider in the space.

Why did you select Chainalysis?

During our evaluation, we did a proof of concept and Chainalysis had the most impressive offering for alerts including the most identified clusters in the sample we provided. We also observed that Chainalysis’ sales team was willing to work with us to truly understand our needs. In addition, Chainalysis was a well-known entity and had a strong reputation across different exchanges, regulators, and law enforcement agencies.