Paxful, one of the world’s largest peer-to-peer cryptocurrency exchanges by volume, has announced the suspension of its marketplace. The decision has come as a surprise to many, as the platform was known for its strong user base and wide range of cryptocurrency trading options.

According to the company’s founder and CEO, Ray Youssef, the suspension is due to key staff departures and regulatory challenges, particularly in the US, where the P2P market has come under increasing scrutiny.

Youssef has stated that the company is taking the most secure option in light of these challenges, and has asked users to explore self-custody and trade elsewhere. The Paxful Wallet will be up for customers to retrieve their funds, and Youssef has emphasized that safeguarding customer funds is his biggest priority. All customer funds have been accounted for, and users are advised to withdraw their funds and explore other options for trading cryptocurrency.

To assist with this process, Youssef has recommended a number of alternative platforms, including Noones and Bitnob. Noones is a new P2P company dedicated to the Global South, and offers lower trading fees, a cheap wallet, and a more efficient KYC process, among other benefits. Bitnob, on the other hand, makes it easy for Africans to connect with Bitcoin.

While the suspension of Paxful’s marketplace may come as a disappointment to some users, Youssef has assured customers that their funds are secure, and that the company is working to address the challenges it faces. In the meantime, users are encouraged to explore other options for trading cryptocurrency, and to take steps to safeguard their funds.

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This article was republished from azcoinnews.com

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/