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Paxful Suspends Operations Citing Regulatory Challenges And Staff Departures

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Paxful Suspends Operations Citing Regulatory Challenges And Staff Departures 15
  • Paxful CEO Ray Youssef has announced that the crypto marketplace is shutting down its operations.&
  • The CEO has attributed the decision to regulatory challenges in the U.S. and the departure of key employees.&
  • The platform has assured its customers that their funds are safe and available for withdrawal.&

Peer-to-peer crypto marketplace Paxful is set to shut down its operations. CEO Ray Youssef, who founded the platform in 2015, announced earlier today that the departure of key staff members and the regulatory challenges in the United States forced him to take the decision to suspend the marketplace. 

Paxful wallet will remain operational to process customer withdrawals

According to the message posted by Ray Youssef on Paxful’s website, the platform’s management went with the “most secure option” to suspend operations as they navigate the issues in the crypto industry. The CEO encouraged his customers to explore self-custody in the meantime. Youssef assured his customers regarding the safety of their funds and recommended they practice self-custody after withdrawing the same. He recommended users use Exodus wallet and Muun wallet and suggested platforms including Noones and Bitnob for customers living outside the U.S. 

“Paxful will be suspending its marketplace. We are not sure if it will come back.”

CEO Ray Youssef

Speaking in a Twitter spaces meeting earlier today, Youssef revealed that the regulators in the United States were impossible to satisfy, despite compliance staff making up a quarter of his company. “The regulators still don’t get it. They grow more suspicious every day,” he added. He also highlighted the lawsuit filed by Paxful co-founder Arthur Schaback, which reportedly prompted the company’s senior management to leave. According to Youssef, the lawsuit put the security of the platform at risk. 

Paxful has become the second crypto platform to wind down operations this month. The news comes barely days after crypto exchange Bittrex announced that it would be shutting down its U.S.-based operations, citing the economic environment and regulatory uncertainty in the country. 


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