The head of the cryptocurrency p2p-exchange Paxful announced the suspension of operations
Ray Yusef, head of cryptocurrency p2p-exchange Paxful, announced the suspension of operations
Ray Yusef is not sure if the platform will resume operations. He recommended customers use other services for Bitcoin storage and trading and began work on a new project
The head of Paxful, Ray Yusef, announced that the cryptocurrency p2p exchange had stopped operations. He said he was unsure whether the platform would resume its operations and recommended that customers use other services.
Paxful is a U.S.-registered peer-to-peer (no middleman) bitcoin trading platform founded in 2015. Users exchanged BTC in various ways: for stablecoins, fiat currencies, gift cards, or cell phone payments. For a fee, Paxful provided dispute resolution and escrow services (guaranteeing that the seller had Bitcoin).
The platform was popular in African countries such as Nigeria and Kenya. Russians also used its services. According to Yusef, the Paxful Wallet remains available for customers to withdraw their funds.
Yousef cited "key employee attrition" and pressure as the reason for Paxful's closure.
In an interview with CoinDesk, Yusef said Paxful succumbed to pressure from U.S. regulators, noting that the company had spent millions on compliance, but "it wasn't enough."
In addition, Paxful co-founder Arthur Shabak sued Yusef and Paxful in March, after which most of the staff quit. Shabak accused Yusef of removing him from running the platform, withholding material information, and making fraudulent fund transfers.
After announcing the suspension of operations on Paxful, Yusef said he had begun work on a new crypto project for peer-to-peer bitcoin trading called the Civilization Kit (Civ Kit).
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