Paxum Bans Bitcoins
 

2012-02-11 Bitcoin Termination
Effective immediately, Paxum Inc can no longer accept any accounts related to Bitcoin or Bitcoin Exchange. All current Bitcoin accounts have been closed and may no longer perform any transaction. Account holders will be able to withdraw their funds via wire transfer.

from a bitcoin forum:

My bet is that they (or some user accounts) got hacked, and that the hacker used the money to buy bitcoin.

It just seems a bit too much of a coincidence that they rolled out "security upgrades", forcing me to change my password, at the same time they blocked bitcoin transactions.

Also, I noticed that Paxum allowed me to set a reasonably weak password, one that wouldn't get accepted by many other sites.

So they are no longer taking advantage of it or they got hacked because of their exposure with bitcoin

All I know that my scarce Paxum funds safer now ...