Paxful Closes Amid Regulatory Pressure
- Paxful, a peer-to-peer cryptocurrency marketplace, closed in April due to increasing regulatory pressure from the U.S.
- Former CEO Ray Youssef warned users to stay off the platform due to concerns of scamming.
- The company managed to reopen with new staff members, but Youssef has since resigned as CEO.
Youssef Warns Against U.S. Financial Companies
Ray Youssef, the co-founder of Paxful, warned users against dealing with U.S.-based financial companies in order to avoid potential confiscation of funds without any explanation or legal recourse. He also said he was working on unfreezing funds seized by the U.S. regulators before his resignation as CEO.
Reopening and New Staff Members
Despite the closure and warnings from Youssef, Paxful managed to reopen with new staff members for moderation of its P2P marketplace for buying and selling cryptocurrency from each other. However, it appears that this has been done without Youssef’s involvement as he has since resigned from his position as CEO at the company.
Complaints Of Scamming Emerge
The reopening of Paxful has raised further concerns about its integrity due to reports of scamming on the platform, prompting Youssef’s warning against using it until further notice. The former CEO stated that he would make whole any users who could not be helped during this period if possible.