The international P2P platform Paxful has ceased operations. This decision was made by the management due to a sharp reduction in the number of staff and the difficulties surrounding the regulation of the cryptocurrency market.
CEO Ray Yousef informed closing the site on the official website. Yousef noted that he could not reveal the details of what led to the closure of Paxful and asked users to withdraw all their funds to third-party wallets.
This will probably come as a shock to many. And while I can’t tell the full story right now, I can only report that, unfortunately, we’ve experienced several layoffs of key employees.
The latest events in the crypto industry do not add enthusiasm either. The war that the US regulators have declared on cryptos makes it difficult for anyone who wants to provide services related to crypto.
In a tweet, Yousef explained that Paxful was forced to close due to a lawsuit with co-founder Artur Shabak. Access to the site was suspended and users began to complain that they could not withdraw their funds. The platform team assures that it is working on solving user problems.
The Paxful platform was founded in 2015. The service provided services for the exchange of various cryptocurrencies, however, in December 2022, the largest altcoin Ethereum (ETH) was removed from the listing of the site. This was done in connection with the transition to a new consensus algorithm – the change deprived the token of uniqueness and made it look like fiat currencies; the second reason was the lack of decentralization of Ethereum, since it is controlled by a limited circle of people; and the last reason was high-profile scams and billions of dollars worth of scams in the Ethereum ecosystem.
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