Paxful, a long-established peer-to-peer (P2P) platform for bitcoin and gift cards, has issued a statement distancing itself from NoOnes, a recently launched P2P platform by Ray Youssef, Paxful’s former CEO.
In an email to users dated July 11, Paxful’s safety team clarified that Paxful has no affiliations with NoOnes or LocalBitcoins, stressing that they cannot resolve disputes or concerns originating from these unrelated platforms.
This communication comes amid confusion among users who have yet to differentiate between Paxful and Noones, largely due to shared access credentials and Youssef’s involvement in both ventures. Paxful’s safety team urged users to remain vigilant against individuals impersonating Paxful representatives offering support.
“We see it as our duty to remind our valued community that our team cannot support you with issues that arise outside of Paxful,” the email emphasized.
Paxful reiterated that all off-escrow trades fall outside its jurisdiction, advising users to trade within Paxful’s escrow system for security. Additionally, the platform advised users to safeguard their personal information.
“Wherever you choose to trade, we respect using cryptocurrencies demands doing your own research and transacting at your own risk. That’s why we work so hard to keep you safe, secure, and offer quick support on Paxful,” the safety team added.
In an effort to improve user experience, Paxful has reduced fees for gift cards and cryptocurrencies, claiming to offer the “lowest in the industry.” The platform has also introduced 50 new payment methods, attracted 2 million new users, and is set to release an improved mobile app.
Paxful has faced significant challenges over the past year. Over a year ago, the platform suspended its marketplace operations. In a letter to users, then-CEO Ray Youssef cited key staff departures as a contributing factor.
Youssef prioritized ensuring users could withdraw their funds to self-custody wallets and facilitating the migration of non-US users to platforms like Nooes. Youssef subsequently resigned from Paxful, citing a hostile work environment exacerbated by legal disputes with co-founder Artur Schaback.
Recently, Paxful co-founder Artur Schaback pleaded guilty to conspiracy to fail to maintain an effective anti-money laundering (AML) program. Schaback’s actions allegedly allowed Paxful to be used for money laundering, sanctions violations, and other criminal activities, including fraud and extortion schemes.
As a result of his failure to implement AML and KYC programs, Schaback made Paxful available as a vehicle for money laundering, sanctions violations, and other criminal activity, including fraud, romance scams, extortion schemes, and prostitution.
He pleaded guilty to conspiracy to willfully fail to establish, develop, implement, and maintain an effective AML program as required by the Bank Secrecy Act.
Schaback is scheduled to be sentenced on November 4 and faces a maximum penalty of five years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Additionally, Schaback will resign from Paxful Inc.’s Board of Directors.
As Paxful navigates this legal challenge, its efforts to improve security and user experience by reducing fees and expanding payment methods will be critical in maintaining trust within its community.
