After the Bitcoin P2P trading platform Paxful suddenly announced the suspension of the platform last week, Paxful CEO Ray Youssef announced on the 6th that he will pay out of his own pocket to repay user funds to avoid deeper legal problems after the platform is out of service. put him at risk of imprisonment.
(Recap:Something happened to the payment platform! Cash App Founder Assassinated; Paxful Exchange Suspends Operations）
(Background of the event:Steaker wants to pay back the money! Promise to compensate 10% first, appoint a lawyer to terminate the “NSCA Acquisition Agreement”）
becomeFounded in 2015 and has more than 9 million users worldwide, Paxful, a Bitcoin P2P trading platform, suddenly announced on the 4th that the platform will be temporarily suspended, and may be permanently suspended due to the departure of core employees and the increasingly stringent regulatory environment. The Paxful wallet will remain active to allow customers to withdraw all their funds on the platform.
Paxful CEO Ray Youssef announced on the 6th that he will pay back user funds out of his own pocket. This move is aimed at trying to comply with the law and avoid deeper legal problems after the platform is shut down. risk, due to his failure to comply with a court order to return Paxful’s frozen funds:
UPDATE ON FROZEN FUNDS: I’m now working with the court on a plan to get user funds back in full, out of my own pocket, and I’m already in jeopardy of contempt of court. I always put user funds first, please bear with me, I don’t want to go to jail…
I know that if I don’t pay out of pocket these users will be stuck and never get back their full funds that’s why I’m taking this risk and have to separate the user list into good and bad wallets because I can’t donate money To terrorists or money launderers, please be patient.
I know that if this is not done by myself then these users will fall thru the cracks and never be made whole. This is why I am taking this risk. Must separate the list into the ok and “bad” buckets as I cannot be giving money to terrorists or money launderers. Patience please.
— Ray Youssef (@raypaxful) April 6, 2023
Involved by Celsius
Paxful has worked with Celsiusroll out Paxful Earn, Paxful Earn users lost funds after Celsius declared bankruptcy last year. Posted late last month by Ray YoussefstatementHe pointed out that the court ruled that the Earn account belonged to Celsius’s bankruptcy estate, not the user, which made the platform unhappy, but he promised that the victim user will still get a refund, and the funds will be reserved by Paxful.
It is reported that Paxful is now in trouble and shut down, related to the legal dispute between Ray Youssef and Paxful co-founder Artur Schaback. Ray Youssef told Coindesk last week disclose“In mid-January, the co-founders of this platform decided to sue the company and myself. The lawsuit was terrible. It scared off the best people on the platform. All my top staff resigned. I have no operational staff.”
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