{"id":136404,"date":"2023-04-05T08:29:05","date_gmt":"2023-04-05T08:29:05","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=136404"},"modified":"2023-04-05T12:09:16","modified_gmt":"2023-04-05T12:09:16","slug":"paxful-p2p-shuts-down-amid-legal-battles-and-executives-exits","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/paxful-p2p-shuts-down-amid-legal-battles-and-executives-exits\/","title":{"rendered":"Paxful P2P shuts down amid legal battles and executives&#8217; exits"},"content":{"rendered":"<p style=\"text-align: justify\">The peer-to-peer Bitcoin exchange Paxful has declared its closure and instructed customers to withdraw their funds from the platform.<!--more--><\/p>\n<p style=\"text-align: justify\">The company&#8217;s co-founder and CEO, Ray Youssef, made the news and gave the reasons behind it, including <strong>major personnel departures and regulatory difficulties for the sector.<\/strong><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Crypto exchange <a href=\"https:\/\/twitter.com\/paxful?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@paxful<\/a> just suspended their marketplace <a href=\"https:\/\/t.co\/JRFwUuePN3\" target=\"_blank\">pic.twitter.com\/JRFwUuePN3<\/a><\/p>\n<p>&mdash; Pledditor (@Pledditor) <a href=\"https:\/\/twitter.com\/Pledditor\/status\/1643243489528889348?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">April 4, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify\">After that, on Tuesday, Youssef stated on Twitter that there is an ongoing legal dispute in which<strong> a Paxful co-founder is suing Paxful and Youssef<\/strong> after being &#8220;<em>kicked out of the company<\/em>&#8221; more than a year ago.<\/p>\n<p style=\"text-align: justify\">Youssef did not mention the plaintiff by name, but it is probable that he is referring to co-founder<b> Artur Schaback,<\/b> who in January brought a claim against Youssef in Delaware Chancery Court, as per a court docket made available on <a href=\"https:\/\/courtconnect.courts.delaware.gov\/cc\/cconnect\/ck_public_qry_doct.cp_dktrpt_frames?backto=P&amp;case_id=2023-0026&amp;begin_date=&amp;end_date=\" target=\"_blank\" rel=\"noopener\">CourtConnect<\/a>.<\/p>\n<p style=\"text-align: justify\">Youssef said that <strong>the co-founder&#8217;s legal team&#8217;s tactics drove away the majority of Paxful&#8217;s top management.<\/strong> He\u00a0claimed that the co-founder refused to pay some of Paxful&#8217;s employees.<\/p>\n<p style=\"text-align: justify\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-136424\" src=\"https:\/\/crypto-economy.com\/wp-content\/uploads\/2023\/04\/Paxful.jpg\" alt=\"Paxful P2P shuts down amid legal battles and executives' exits.\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/04\/Paxful.jpg 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/04\/Paxful-300x109.jpg 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/04\/Paxful-768x279.jpg 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<p style=\"text-align: justify\">The executive further said that by this past Friday, <strong>there were no longer any engineers, members of the compliance team, or security staff who were working for the company<\/strong>. He ultimately claimed that he made the decision to close the business at that time because of security reasons.<\/p>\n<h2 style=\"text-align: justify\">All users funds remain safe<\/h2>\n<p style=\"text-align: center\"><em>\u201cThis will probably come as a shock to many,\u201d <\/em>Ray Youssef wrote in a blog post<em>. \u201cAll customer funds are accounted for. Please withdraw them and, if you can, self-custody.\u201d<\/em><\/p>\n<p style=\"text-align: justify\">He said this while recommending options like Exodus or Munn Wallet for users to self-custody their digital assets.<\/p>\n<p style=\"text-align: justify\">The business is also facilitating easy transfer to alternative options for non-U.S. customers, such as Bitnob, which enables Bitcoin access for Africans, and <a href=\"https:\/\/noones.com\/\" target=\"_blank\" rel=\"noopener\">Noones<\/a>, a new P2P startup devoted to the Global South.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">For those who use Paxful:<br \/>1. A new platform recommended by Paxful CEO <a href=\"https:\/\/twitter.com\/raypaxful?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@raypaxful<\/a> is live; Noones <a href=\"https:\/\/twitter.com\/noonesapp?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@noonesapp<\/a> <\/p>\n<p>2. You can log in to Noones with your Paxful credentials &amp; your KYC, trades, etc will be there already.<\/p>\n<p>3. Log in to Paxful then transfer your funds from Paxful to\u2026<\/p>\n<p>&mdash; Grey Jabesi (@greybtc) <a href=\"https:\/\/twitter.com\/greybtc\/status\/1643367997417947136?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">April 4, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify\">The suspension of Paxful comes at a time when regulators are tightening their scrutiny of crypto firms that operate in the United States.<\/p>\n<p style=\"text-align: justify\"><strong>The CEO also explained that US regulatory issues have made it more difficult to continue operations.<\/strong> Peer-to-peer markets like Local Bitcoins abruptly shut down last month as the country&#8217;s regulatory bodies continue to put pressure on some of the largest centralized crypto exchanges like <a href=\"https:\/\/crypto-economy.com\/binance-vs-coinbase\/\" target=\"_blank\" rel=\"noopener\">Coinbase and Binance<\/a>.<\/p>\n<p style=\"text-align: justify\">However, many people are applauding the usual transparency of Ray Youssef, with many users sharing that they have already been able to withdraw their digital assets from the platform successfully.<\/p>\n<p style=\"text-align: justify\"><strong>Youssef has made various actions in the past that were not meant to maximize revenues for his firm<\/strong>. The CEO said in December 2022\u00a0that Ethereum would no longer be available on the platform because of\u00a0&#8220;integrity over revenue.&#8221; Last week, he also vowed to reimburse any victims of Celsius Earn on Paxful out from his own pocket, instead of waiting for the bankruptcy procedure to conclude.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The peer-to-peer Bitcoin exchange Paxful has declared its closure and instructed customers to withdraw their funds from the platform.<\/p>\n","protected":false},"author":26,"featured_media":136423,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,84,74],"tags":[5001,4970],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/136404"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/26"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=136404"}],"version-history":[{"count":0,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/136404\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/136423"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=136404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=136404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=136404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}