Paxful, a well-known peer-to-peer cryptocurrency exchange, has announced its decision to shut down its operations. CEO Ray Youssef notified the platform‘s users about the decision, citing “key staff departures” and “regulatory challenges for the industry” as the primary reasons for the closure. Although Youssef indicated a slight possibility of the closure being temporary, it is highly likely to be permanent.
Paxful had faced multiple setbacks in the past year, including new registration requirements that forced it to stop operating in Canada in late January. The exchange‘s announcement of its closure comes after it made all users who lost funds with Celsius Earn whole on March 29th, just days before shutting down.
Paxful has recommended that its users consider self-custody as a means of safeguarding their assets. The platform has also promised easy migration to other P2P platforms, without specifying which ones. Paxful’s wallet is still operational, and users can retrieve their funds safely.
The closure of Paxful has caused concern among its users and the cryptocurrency community at large. However, it serves as a reminder of the risks involved in investing in cryptocurrency and the importance of choosing a reliable platform for trading. The effects of Paxful’s shutdown on the cryptocurrency market remain to be seen.
Youssef acknowledged during a Twitter space on Tuesday that a lawsuit brought by a Paxful co-founder who was “kicked out of the company” over a year ago had also influenced the decision to close the platform. While he did not name the plaintiff explicitly, it is believed that Youssef was referring to co-founder Artur Schaback, who filed a lawsuit against Youssef in January.
