Ray Youssef, the co-founder and former CEO of Paxful, announced in a tweet that he’ll pay back the money of users on the Paxful platform. He revealed that he’ll not wait until the frozen assets are released as he’ll use his personal funds. “My former partner won’t release your funds so I’m covering them myself.”
Paxful is a peer-to-peer cryptocurrency exchange platform that allows users to buy and sell Bitcoin and other cryptocurrencies with over 300 payment methods. It provides an escrow service and charges a fee for each transaction, and has partnerships with organizations and charities to promote financial inclusion.
However, in recent times, the platform has been under turbulence. First, when FTX collapsed and Ethereum migrated from Proof of Work to Proof of Stake, the crypto market was affected. Paxful in the wake of the migration of Ethereum decided to suspend Ether from the platform as it didn’t trust the security behind Ethereum.
Suspension of operations
In the first week of April 2023, Paxful announced that it was winding up its operations as a result of industry regulations in the peer-to-peer and US market as well as staff exit from the firm. “This will probably come as a big shock to many,” said Youssef about the move. “While I cannot share the full story now, I can say that we unfortunately have had some key staff departures.”
The former CEO, who announced his resignation a few days ago, also told users to remove their assets from the platform as soon as possible while suggesting another platform they could use. In the course of withdrawing their assets, users’ funds were frozen with plans for them to be unfrozen.
According to Ray on the payment of users’ funds, he noted that although he has moved his shares in Paxful to a public trust that will use the money to build schools in the global South, he’s willing to pay all users before their funds are unfrozen.
He also added that after paying all users, they should also wait to get their funds when they are unfrozen. “Yes, this means you will be receiving twice as much as you had.”
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