Crypto Ecosystem Loses Another P2P Marketplace As Paxful Shuts Down – End of an Era?
Peer-to-peer cryptocurrency exchange Another casualty of this unusually icy crypto winter was Paxful.
“Paxful will shut down its marketplace today. We do not know if it will return “said Paxful’s CEO and founder Ray Youssef on Tuesday.
Customers can still access their funds through the Paxful Wallet, though. According to the CEO, protecting consumer funds is the top concern.
Nonetheless, users quickly voiced their displeasure that the transfers were taking longer than usual. Because of a database overload, the CEO reassured them that this issue will also be rectified.
Exodus and Muun are two cold wallets that the business advises using. For non-US customers, Paxful is currently promoting migration to platforms like Noones, a peer-to-peer (P2P) startup that focuses on the Global South (Latin America, Africa, Asia, and Oceania).
Bitnob, a Nigeria-based P2P network that enables users to buy, save, and invest in Bitcoin, is another advised choice for African customers (BTC).
Two (or three) main problems
Youssef acknowledged that the company’s decision to close its doors may come as shocking news to some, but he refused to delve into specifics, stating he couldn’t “tell the complete story now.”
Youssef claimed during a Twitter Spaces event that “even that was not enough to please Uncle Sam” and that “a fourth of the firm was compliance guys” (referring to the US government).
Youssef claimed that continuing business operations while merely preventing US customers was not actually a possibility because the organisation lacked the necessary staff.
Youssef stated the aforementioned problems as well as a lawsuit that a Paxful co-founder had filed against the CEO and the business. The individual was not identified, although Artur Schaback is the plaintiff in a court case from January.
These problems seem to have been a tempest powerful enough to sink the whole ship. According to the CEO, the business is attempting to fix them but has chosen to go with “the most secure alternative” and advise its clients to “explore self-custody and trade elsewhere.”
Youssef also tweeted that he would hold off on withdrawing his own Bitcoin until the clients had done the same, adding that he already kept the majority of his assets in his own custody.
On March 29, Paxful, a 2015 startup, announced that it would be refunding participants of its Earn programme who were unable to access their money as a result of Celsius’s bankruptcy filing.
Youssef stated at the time, “I personally took action and will be refunding all impacted Paxful users—Celsius monies will be available in Paxful Wallet later this week.”
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