Paxful, one of the world’s largest peer-to-peer crypto exchange platforms, has announced the closure of its operations. Citing the increasing regulatory pressure, the marketplace has urged its users to retrieve their funds. This decision came just a few days after Paxful CEO, Ray Youssef’s assurance that those who had participated in Paxful’s Earn program would receive a refund.
Paxful’s Earn program provided its users with the opportunity to benefit from Bitcoin in partnership with Celsius; however, Celsius declared bankruptcy in July 2022.
Reason for this Move
According to multiple sources, the main reasons for Paxful’s shutdown are regulatory challenges and the departures of several important staff members.
The Paxful CEO, Ray Youssef stated that the decision was taken due to the regularity issues encountered by the industry and the departures of essential staff members. Furthermore, to ensure the safety of its users’ funds, Paxful has recommended self-custody and has reaffirmed its commitment to protecting them.
The CEO further stated that the situation had deteriorated to the point where there were no engineers, compliance team members, or security personnel available at the company. Consequently, he had no choice but to close the business. He further mentioned that he then recruited an engineering team to take charge of the Paxful digital wallet, which continues to ensure the secure storage of user resources.
At this time, no announcement has been made regarding the potential return of the company in the future.
Paxful is a renowned global peer-to-peer platform that facilitates users to purchase and sell Bitcoin, Ethereum, and Tether with anyone in the world, allowing them to set their own prices and payment methods. Established in 2015, Paxful has been a leading crypto exchange platform in the world.
Due to regulatory pressures, Paxful has made the decision to close its operations. This closure has been also compounded by the departure of some key personnel and a lawsuit initiated by a co-founder.