Paxful, the largest P2P exchange, abruptly shut down as a result of a struggle between the two co-founders for ownership of the business while they were battling it out in a recent court dispute.

Artur Schaback and Mohamad (Ray) Youssef, the two co-founders of the #Paxful #bitcoin #P2P marketplace, are embroiled in a nasty legal battle in Delaware, USA.

This could have been the real reason why the market closed unexpectedly on April 4. According to court filings, Schaback and Youssef, who co-founded Paxful in 2015, are currently litigating for ownership of the business and leveling several accusations against one another.

Due to conflicts with Paxful CEO Youssef regarding the future and operation of the market, particularly "newspapers" continued reporting to unknown groups, Schaback, who led the company until February 2022, was prohibited from running it.

A significant portion of the company's bitcoin was transferred to "EMiR," a non-legitimate Turkish software company. Schaback stated:

“It does not have a website publicizing software or web development services and its physical address […] appears to belong to a clothing company.”

Dekslektika, a putative subcontractor who allegedly received funds from EMiR, is a St. Petersburg, Russia-based business controlled by a former Paxful official. These companies are purportedly in charge of "significant non-conventional transactions" that allegedly began as soon as Schaback's access to the company's operations was restricted, per court records.

Youssef claimed that the claims related to Schaback's refusal to pay a Turkish engineering firm that was employed by this business, which led the team of 80 engineers to cease operations. Youssef claimed that keeping Schaback at Paxful was impossible because his team was about to quit.

In an interview, Schaback said that on April 4, Youssef arbitrarily shut down Paxful. He contends that Youssef's actions are meant to remove me and the other shareholders from his plan and centralize control in nations outside of the United States. Schaback claimed he had restricted access to firm information and hasn't taken part in day-to-day operations for the past 18 months.

As was previously noted, Paxful, one of the largest peer-to-peer (P2P) cryptocurrency exchanges in the world by volume, has declared that its market has been stopped and that an opening date has not yet been set.

This news is republished from https://coinaquarium.io/