The CEO of the peer-to-peer crypto marketplace has announced that they have unblocked 88% of the accounts after suspending their operations. In addition, with their latest development, they have released $1 million of their customer funds.
Ray Youssef also said that he couldn’t unfreeze the remaining 12% because he doesn’t have the authority to do so; they are under the control of United States regulators.
Youssef said this was done without engineers or compliance officers, so I urged all the users to login into their accounts and get their funds immediately.
Paxful’s official Twitter account announced that Ray had assumed the position of CEO following his predecessor’s departure. The company expressed gratitude towards Ray for his previous leadership and assured its commitment to serving individuals excluded from the global financial system. This suggests that Paxful will continue to operate effectively without Ray Youssef’s leadership.
Key Points:
- Paxful CEO Ray Youssef freed 88% of accounts before stepping down from his position.
- Unlocked accounts need to take immediate action to withdraw their funds.
- The legal disagreements between Ray Youssef and Artur Schaback, both co-founders, remain highly contentious.
What is Paxful?
Paxful is a peer-to-peer cryptocurrency marketplace that enables users to buy and sell Bitcoin and other cryptocurrencies in a secure and decentralized manner.
The platform allows individuals to trade with each other directly without the need for a centralized exchange. Paxful starts in 2015 and has become one of the most popular and trusted P2P cryptocurrency trading platforms worldwide, with over 4.5 million users and support for over 300 payment methods.
Paxful was starts by Ray Youssef and Artur Schaback, entrepreneurs frustrated by the lack of accessible options to buy or sell Bitcoin in developing countries. This platform allows users to buy and sell cryptocurrencies with various payment options, including bank transfers, gift cards, online wallets, and cash.
Paxful offers a secure escrow system that protects buyers and sellers during transactions. The platform also employs a robust KYC/AML compliance process to ensure the safety and security of its users.
3% of Funds Remained Frozen
Ray Youssef already revealed that he would be stepping down from his position on April 18th. As a result, he said, I am giving up this title to unfreeze accounts and will also come into danger of court contempt.
He tweeted,
“If your account is still frozen, I am sorry because I cannot do anything. The US Regulators have access to those funds. I never have access to customers’ funds.”
According to Paxful founder, 3% of the total customer funds are frozen, resulting in around $4.4 million of frozen funds on the platform. The outgoing CEO stated that the other funds were in the hands of the custodian and he would ruin his name by stealing them.
The Fate of Paxful is yet to determined
Later, Paxful officials said, “Ray has taken over as the CEO of Paxful; we thank him for his leadership over the past eight years. Paxful will continue its operation and support those excluded from the world’s financial system.
Ray Youssef recently announced the suspension of Paxful’s activities, which could be a permanent decision. Youssef cited the increasingly stringent regulatory environment and the departure of key members as reasons for the closure but did not provide further details about the exact cause of the decision.
Despite the platform’s closure, the Paxful wallet will remain functional, and customers can withdraw their funds. Youssef has also expressed a commitment to maintaining the security of customer funds and facilitating an easy transition for non-US users to other P2P wallets.
The closure of Paxful has already surprise many people, and Paxful co-founder Artur Schaback said that Ray has shut down Paxful unilaterally, and now he is throw out of the company.
Subsequently, legal disputes between Paxful’s co-founders emerged. In 2015, Ray Youssef and Artur Schaback co-founded Paxful, but they have since filed lawsuits against each other over control of the company.
Delaware court documents reveal that the co-founders have also accused each other of embezzling company funds, money laundering, and evading US sanctions against Russia.
Conclusion
The future of Paxful remains uncertain as legal disputes between co-founders and regulatory issues continue to plague the platform. While CEO Ray Youssef was able to unblock 88% of the accounts and release $1 million in customer funds, the remaining 12% remains frozen under the control of US regulators.
Despite the platform’s closure, the wallet will remain functional for customers to withdraw funds. Youssef has expressed a commitment to maintaining the security of customer funds and facilitating an easy transition for non-US users to other P2P wallets. It remains to be seen what the ultimate fate of Paxful will be in the cryptocurrency marketplace.
FAQs
What payment options are available on Paxful?
Paxful offers various payment options to users, including bank transfers, gift cards, online wallets, and cash.
Is Paxful a secure platform?
Yes, Paxful employs a secure escrow system that protects buyers and sellers during transactions. The platform also employs a robust KYC/AML compliance process to ensure the safety and security of its users.
What happened to Paxful?
Paxful’s CEO, Ray Youssef, announced the suspension of the platform’s activities, citing the increasingly stringent regulatory environment and the departure of key members as reasons for the closure. The closure could be permanent, but the Paxful wallet will remain active so customers can withdraw their funds. Legal disputes between Paxful’s co-founders have also emerged.
Can users withdraw their funds from Paxful?
Customers can withdraw their funds from the Paxful wallet, which will be fully credit.
Why are some accounts still frozen on Paxful?
According to Ray Youssef, 3% of the total customer funds are frozen, resulting in around $4.4 million of frozen funds on the platform. The remaining funds are under the control of United States regulators, and Youssef does not have the authority to unfreeze them.
