Paxful Suspends Market Due to Crypto Downturn and Regulatory Issues

Paxful CEO Cites Regulatory Hurdles, Market Struggles

A peer-to-peer cryptocurrency exchange called Paxful has declared the suspension of its market due to the ongoing pressures of the cryptocurrency downturn. 

The CEO of the business, Ray Youssef, said it is unclear whether the industry will recover. Customers will still be able to retrieve their money through the Paxful Wallet, which will remain operational. Youssef emphasized that protecting customer assets continues to be the company's top concern and added that every penny of customer money is tracked. Users have expressed frustration that the transfers are taking longer than normal, but the CEO has reassured them that this will be fixed because of a database overload.

Exodus and Muun are two cold wallets that the business advises using. Paxful offers migration to alternative platforms for non-US users, including Bitnob, a Nigeria-based P2P platform that enables users to purchase, save, and invest in Bitcoin, and Noones, a P2P company that focuses on the Global South. Youssef acknowledged that the business closing its doors might come as shocking news to many people, but he refrained from going into specifics because he felt unable to share the entire story at this time.

Youssef noted that the business has lost some key employees and that regulatory issues for the sector are continuing to worsen, particularly in the peer-to-peer market and particularly in the US. Youssef also brought up a lawsuit that had been launched against the CEO and the business by a co-founder of Paxful. 

These problems have been like a hurricane that could potentially sink the whole ship. While the business is working to find solutions, it has chosen to urge its clients to consider self-custody and conduct business elsewhere in order to take the most secure course of action.

Youssef tweeted that he already had self-custody over the majority of his assets and would wait to withdraw his own Bitcoin until the clients had done the same. In the meantime, Paxful has announced that it will reimburse users of its Earn program who were unable to access their money after Celsius filed for insolvency. 

Youssef claimed to have taken action directly and will issue refunds to all impacted Paxful users. The business was established in 2015, and its suspension emphasizes the industry's ongoing difficulties.

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