Another exchange about going under the mud as bitcoin keeps pumping
Last December, Paxful exchange suspended the trading of Ethereum on its marketplace, citing the network’s upgrade to proof-of-stake from proof-of-work as a reason for the move. Since then, the platform has only been trading bitcoin, gift cards and usdt.
Speaking on Twitter Spaces following this morning's surprising announcement, by Youssef he said there were concerns about the safety of customer funds as somethings where not adding up, thanks to a lawsuit by Paxful co-founder Artur Schaback. >couldn’t guarantee the security of the platform,“ Youssef said. ”This is why this thing had to go down.”
[Schaback] was pissed, so he sued the company and his litigation team was really nasty,” Youssef narrated how. “They drove away all their senior level staff. They just couldn't deal with this guy anymore and then he refused to pay our engineers and he refused to pay our compliance.”
Paxful – a peer-to-peer (P2P) platform for trading bitcoin (BTC) – hence as to suspend its marketplace, and is unsure whether operations will resume, according to a message from published on its website by the ceo Youssef
"This will probably come as a big shock to many," said Youssef. "While we are waiting for the full story now,it's been announced that they have loss some key staff who departed from the company ." Youssef also took note of regulatory challenges, particularly in the P2P market and in the U.S.
The Paxful Wallet, said Youssef, will remain in operation in order for customers to retrieve their funds. Customers are being encouraged to transition to self-custody or use other service providers like Bitcoin payments company Bitnob and newly created peer-to-peer marketplace, Noones.