This only applies to transactions that have crypto as the payment method correct?
Yup!
it happens because of third party compliance its not a big issue if compliance or audit take place.
i think blockchain is better its fees high but it is better.
Just sue them.
Reports never do anything
Try to find a temporary solution and the meanwhile build your own service.
Found the company info: https://www.sec.gov/Archives/edgar/data/0001806785/000180678520000002/xslFormDX01/primary_doc.xml
Time to lawyer up.
Also, time to talk to the US Securities and Exchange Commission.
SWAPD army on their way 
Updating this for the record, as this topic is now live on Google AdWords.
Their zendesk support team responded with the following message:
I don’t find the “we can’t tell you when we will do this” part acceptable. They might as well have said, “we will hold your funds until whenever we feel like it”.
I normally wouldn’t overreact like this, but after extensive research, most people who have never seen their frozen funds again received the same type of emails. And they’re contradicting themselves, as in my user panel it says that we’ve been terminated due to TOS violation, yet the email said this is a standard review procedure. Besides, Paxful outsources all their verification procedures to third parties, who have successfully verified us during the signup process. In short, they’re lying.
Ray Youssef
About Paxful
Ray Youssef , co-founder and CEO of Paxful, set up the Built with Bitcoin Foundation to provide people with access to education and water. To date, the foundation has built four schools (two in Rwanda, one in Kenya, and one in Nigeria), multiple water projects, and cultivated dozens of farms
this pretty much proves the guy is a scammer.
if you see foundation and schools …money laundering/ scams and so on
edit*
try spam the guy in linkedin
https://www.linkedin.com/in/ray-youssef-683b20a1
fucked up how some companies are left to operate , if it was a person he would be in jail by now
That’s hurting for the brand but good work 
I am so angry that I have a flight to catch and won’t be back until Tuesday. I want to work on this case 24/7.