Paxful, the peer-to-peer Bitcoin marketplace, has announced its closure and is urging its users to withdraw their funds from the platform. In a blog post, CEO and co-founder Ray Youssef acknowledged that the decision might surprise some users. The company is committed to ensuring a smooth transition for its users and will provide support throughout the withdrawal process.
In a reassuring tone, he affirmed the safety of all customer funds and advised them to withdraw their funds from the platform, with a preference for self-custody if feasible. Furthermore, on March 5, Youssef took to Twitter to declare that he would only withdraw his Bitcoin once all Paxful users had retrieved their BTC.
Furthermore, the accompanying image in the tweet showcases a mere 2.3 BTC under Youssef’s ownership. Consequently, a follower raised a query, expressing doubt that this was the entirety of his Bitcoin holdings. The CEO replied, “I practice self-custody, my friend, and I only keep on exchanges what I plan to sell and receive my salary in BTC.”
Paxful’s recent announcement of its shutdown was attributed to regulatory challenges and key staff departures. However, during a Twitter space conversation, Youssef, the founder, disclosed that the decision was also influenced by a former co-founder’s lawsuit against him and the company. Youssef revealed that he is facing a legal case filed by the co-founder, who was removed from the company over a year ago.
According to experts, Youssef’s recent remarks were likely directed towards Artur Schaback, co-founder of Paxful. Although not explicitly naming Schaback, this information was obtained through CourtConnect, which revealed that Schaback had filed a lawsuit against Youssef in Delaware Chancery Court earlier this year. This information was gathered professionally, adhering to the highest standards of journalistic integrity.
While the ongoing lawsuit involving Paxful prevents confirming the plaintiff’s identity, a company spokesperson acknowledged that Schaback, a co-founder and current board member, is involved.
