According to a note from CEO Ray Youssef posted on the company's website, Paxful, a peer-to-peer (P2P) network for trading #bitcoin (BTC), is halting its marketplace and is unsure when operations will return.
Youssef noted the difficulties with regulation, notably in the #P2P industry and in the United States. According to him:
"This will probably come as a big shock to many. While I cannot share the full story now, I can say that we unfortunately have had some key staff departures."
Youssef stated that users will still be able to access their funds through the Paxful Wallet. Consumers are being urged to switch to self-custody or utilize alternative service providers like peer-to-peer marketplace Bitnob, or even Noones, a startup that accepts bitcoin payments.
The market for trading ether was shut down by #Paxful in December due to the network's migration from proof-of-work to proof-of-stake. The platform has only traded bitcoin since that time.
Following this morning's unexpected revelation, Youssef remarked on Twitter Spaces that there were worries about the security of customer monies because of a lawsuit filed by Paxful co-founder Artur Schaback.
“I couldn’t guarantee the security of the platform. This is why this thing had to go down.”
Youssef added:
“[Schaback] was pissed, so he sued the company and his litigation team was really nasty. They drove away all of our 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.”
This news is republished from https://coinaquarium.io/