The esteemed Paxful marketplace, a popular peer-to-peer (P2P) platform for trading cryptocurrencies, has resumed operations following its temporary suspension in April 2023. During the suspension period, the Paxful Wallet continued functioning, ensuring users could still access their funds.
On May 8, Paxful revealed in a blog post that it was ready to relaunch the marketplace, much to the relief of its millions of users. The announcement included a heartfelt message to the platform’s users, acknowledging the challenges they faced during the suspension:
“We understand that the sudden suspension has been a trying time for many of our users. We are thrilled to return and continue providing financial access to millions of people around the world.”
A Recap of the Paxful Closure
The Paxful P2P marketplace was abruptly shut down in April 2023, while its wallet remained operational. Before the platform’s issues surfaced, Paxful was a leading P2P marketplace, boasting over six million users worldwide.
Regulatory challenges were cited as one of the primary reasons for the temporary closure, as Paxful co-founder and former CEO Ray Youssef mentioned. Key staff departures and an ongoing legal battle between Youssef and fellow co-founder Artur Schaback contributed to the platform’s struggles.
Youssef characterized Schaback’s litigation as “nasty,” explaining that the dispute arose from Schaback’s dissatisfaction with the company’s direction. That ultimately lead to the lawsuit against both Youssef and the company.
Refunds and Account Unfreezing
Following the suspension, Youssef committed to refunding customers from his personal funds to avoid potential legal consequences. Before the marketplace reopening, Paxful successfully unfroze 88% of its customers’ accounts, leaving a remaining 3% frozen.
On April 18, amidst the chaos and uncertainty, Youssef announced his resignation as CEO of Paxful.
With the Paxful marketplace now back online, the platform is eager to regain the trust of its users and reestablish its position as a prominent player in the P2P cryptocurrency trading industry.
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