Paxful, one of the largest P2P cryptocurrency exchange platforms, recently decided to suspend its operations in the global market, leaving thousands of users confused. The sudden closure is attributed to regulatory challenges in the United States as well as mass departures of key workers, according to founder and CEO Ray Youssef. However, some users seem to have noticed that the platform simply changed its name.
Paxful says goodbye to its users
U.S. regulations continue to strain crypto companies, and Paxful is one of the victims of this delicate situation.
The peer-to-peer (P2P) exchange platform for bitcoin transactions has indeed published a press release in which it announces the suspension of its activities on the world market.
The decision is primarily driven by regulatory challenges, particularly in the U.S., as well as the departures of some key workers, said the founder and CEO, Ray Youssef.
While I can’t share the whole story right now, I can say that we have unfortunately suffered some key employee departures.Ray Youssef, CEO of Paxos
The CEO however, reassured customers that their funds are safe and that the Wallet Paxful will be available for the process of recovering their funds. Paxful has also recommended its customers to use third-party wallets such as Exodus Wallet and Muun Wallet to store their funds.
The platform has proposed a migration to other providers, including Noonesa new P2P company, and Bitnob, a Bitcoin payment company that provides Africans with easy access to Bitcoin. This proposal is aimed at customers who do not live in the United States.
Noones was strongly encouraged by the CEO of Paxful who indicated that this provider offers lower trading fees, a more generous affiliate program than Paxful and an efficient KYC process.
Note that the platform stated that they will maybe never resume their activity.
Is one of the co-founders behind the platform’s closure?
This Tuesday, April 4th, an incredible story was revealed by Youssef during a Spaces on Twitter. It seems that the co-founder Arthur Schaback would be at the origin of the radical decision to close the platform.
According to Youssef, the lawsuit initiated by Schaback jeopardized the security of client funds, precipitating the closure of Paxful. In addition, Schaback will also be responsible for the departure of many employees due to his bad management of the company.
It should be remembered that in last December, Paxful had already suspended trading in the ETH due to its change in consensus.
A question remains: since the features found on the new Noones platform are identical to those of Paxful, is it not simply a name change? We will keep you informed.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.