Paxful Theft by "Compliance Review"

For those that don't know, Paxful is a P2P trading site similar to LocalBitcoins.

I am a long time OTC trader with over 7,500 trades between LocalBitcoins and Paxful. I have been a registered MSB since 2014. A couple of months ago before meeting a seller for a $50,000 trade (in full accordance with FinCEN regulations), I had them escrow the coins on Paxful for my physical security. When the time came for the seller to release the coins, he received a notice that his rarely used account had been frozen and he could not release or withdraw his coins.

It was strange that his account was frozen after his $50,000 deposit. At the time, I was unaware something was going on at Paxful, so I assumed his account would be unfrozen soon. It’s still frozen two months later. He tells me Paxful just ignores his support requests and has stopped responding.

I became leery of leaving large amounts of bitcoin on Paxful. Lo and behold, five days ago my account was frozen immediately after a 0.28 BTC deposit. I have been told my account is under “compliance review” for “my safety.” When I ask if I can be permitted to withdraw my coins then, I am ignored. When I ask how long the compliance review will take, my question is left unanswered. When I tried to make a post on /r/paxful, this happened.

Something is going on at Paxful.