Paxful, a bitcoin P2P trading platform, has announced the suspension of its marketplace, leaving uncertainty around the possibility of future operations. In a message from CEO Ray Youssef posted on the company’s website, the decision was communicated to its users.
Ray Youssef, CEO of Paxful, has revealed that the platform is facing some unexpected challenges leading to its suspension, which may come as a shock to many users. Though he didn’t disclose details, he mentioned staff departures and regulatory issues in the P2P market and the U.S. as contributing factors.
In a recent lawsuit, Paxful’s co-founder Artur Schaback accused CEO Ray Youssef of shutting him out of the operation, withholding crucial information about the company’s business dealings, and making fraudulent fund transfers.
However, Youssef ensured that customers could still retrieve their funds via the Paxful Wallet, while encouraging them to switch to self-custody or alternative service providers. According to Youssef, All customer funds are accounted for, and safeguarding client assets is the exchange’s priority.
Since December, Paxful has only been trading bitcoin on its marketplace, as it suspended ether trading due to the network’s shift to proof-of-stake from proof-of-work.
Paxful, established in 2015, has become the latest casualty of the crypto winter, following the recent closure of Localbitcoins.