peer-to-peer crypto marketplace paxful Crypto has become another victim of this particularly cold winter.
“Today, Paxful will suspend its marketplace. We are not sure if it will return,” Said Ray Youssef, founder and CEO of Paxful, on Tuesday.
paxful wallet, however, will remain in service for customers to retrieve their funds. The CEO stated that protecting the customer’s money is the main priority, adding that,
“All customer funds have been accounted for. Please withdraw them and if you can – self-custody.”
However, users soon complained that transfers were taking longer than usual. The CEO assured them that this too would be sorted out, saying that the database was overloaded.
The company recommends that cold wallets like exodus And mun, Paxful is currently offering migration for non-US users to other options for platforms focused on the Global South (Latin America, Africa, Asia and Oceania), such as a peer-to-peer (P2P) company called Paxful. Is. None,
Another recommended option for African customers is bitnobA Nigeria-based P2P platform that lets users buy, save and invest bitcoin (btc),
two (or three) main problems
While acknowledging that the company closing its doors may be shocking news to many, Youssef wouldn’t go into specific details about it, saying he “can’t share the full story right now.”
What Joseph shared is that,
“Unfortunately we have had some key employee departures. In addition, regulatory challenges for the industry continue to grow, particularly in peer-to-peer markets and most notably in the US”
In a Twitter Space Meetup, Joseph Said that “a quarter of the company was in compliance” but even that “wasn’t enough to please Uncle Sam” (referring to the US government).
Yusuf said that continuing to operate but only barring customers from the US was not really an option as the company did not have enough staff for that.
In addition to the above issues, Youssef also noted a lawsuit brought by a Paxful co-founder against the CEO and the company. that person didn’t have a name, but there’s a January court docket Together artur shabach as a plaintiff.
These issues seem to have been a storm strong enough to possibly sink the whole ship. In the CEO’s words, the company is working to resolve them, but has decided to take the “safest option” and has asked its customers to “explore self-custody and do business elsewhere.”
Youssef also tweeted that he will not withdraw his BTC until the customers withdraw their coins. worth noting that it is already self-protecting most of its assets.
Meanwhile, on March 29 Paxful, which was founded in 2015, Said that it will refund users of its Earn It Program who were unable to assess their wealth after the following Celsius bankruptcy filing.
“I have personally taken action and will refund all affected Paxful users – Celsius funds will be available in Paxful wallets later this week,” Youssef said at the time.
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learn more:
, Paxful exits Ethereum
, Paxful’s Bitcoin Lightning
, Paxful launches bitcoin/gold trading to meet ‘surprisingly high’ demand
, Paxful ‘Flippens’ LocalBitcoins as Largest P2P Bitcoin Marketplace
, How to choose a bitcoin wallet?
, bitcoin security tips for beginners