The peer-to-peer Bitcoin marketplace, Paxful, recently resumed operations after an abrupt shutdown. However, its former CEO, Ray Youssef, has expressed concerns, stating that he cannot vouch for anything happening on the platform.
Youssef’s remarks come as users report issues with their accounts and a lack of control over the platform.
Departure and distrust
Youssef, who left the company weeks prior, took to Twitter on May 11 to remind users that he no longer has control over the platform and cannot vouch for any current activities. Urging users to “trust no one,” Youssef promised an update regarding a trust established to compensate users with frozen funds.
This comes in the wake of reports that Paxful had resumed operations just a few weeks after shutting down due to factors such as the departure of key staff and regulatory challenges.
The shutdown was also reportedly influenced by disagreements between Youssef and Paxful co-founder Artur Schaback. The company’s official Twitter account posted on May 10, thanking users for their patience and stating that the platform’s functionality was gradually being restored.
Youssef addressed concerns from users claiming they had been scammed on the platform, stating that he too had been banned and no longer had any control.
He reiterated this message to other users inquiring about their blocked funds. When asked about the reason for his departure from Paxful, Youssef hinted at a complex situation, saying, “It is a wild story bro. We need a [Twitter] spaces.”
Paxful’s suspension and history
On April 4, 2023, Paxful announced in a blog post that it was suspending operations, with Youssef, then CEO, stating, “Today, Paxful will be suspending its marketplace. We are not sure if it will come back.”
He expressed that the suspension might be shocking to many and could not share all the details at the time. Youssef did reveal that key staff departures and growing regulatory challenges, particularly in the U.S., played a role in the decision.
Paxful was co-founded by Ray Youssef and Artur Schaback in July 2015 and became the largest P2P exchange by volume in 2018. The platform experienced significant expansion in Venezuela and Africa over the past few years.
In June 2021, the company pledged to donate 1% of its profits to charity. A week before announcing the suspension of services, Youssef informed the public that Paxful had reimbursed its Paxful Earn customers after issues related to the Celsius bankruptcy.
The recent resumption of Paxful’s operations has been met with doubts from its former CEO and concerns from users. With Youssef’s departure and the platform’s past challenges, the future of the platform remains uncertain.
As the company works to restore functionality and address user concerns, it’s crucial for users to remain vigilant and monitor developments closely.
