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+--- Thread: Paxful Suspends Operations (/showthread.php?tid=6238176)
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Paxful Suspends Operations - SUI-3183372 - Apr 4, 2023
Paxful suspends operations, citing key staff departures and regulatory issues as the key reasons why. It is stated that all customer funds are safe and withdrawals are being processed.
However, if you look at a very recent lawsuit filed just 5 days ago, we start picking up whiffs of fraud:
https://www.docketalarm.com/cases/Delaware_State_Court_of_Chancery/2023-0026/ARTUR_SCHABACK_individually_on_behalf_of_himself_and_derivatively_on_behalf_of_Paxful_Holdings_Inc._vs._MOHAMED_AZAB_YOUSSEF_Defendant_and_PAXFUL_HOLDINGS_INC._Nominal_Defendant/91434268/
CoinDesk article below
Quote:Peer-to-Peer Bitcoin Exchange Paxful to Suspend Operations
A message from co-founder and CEO Ray Youssef cited key staff departures and regulatory challenges.
Paxful – a peer-to-peer (P2P) platform for trading bitcoin (BTC) – is suspending its marketplace, and is unsure whether operations will resume, according to a message from CEO Ray Youssef published on its website.
"This will probably come as a big shock to many," said Youssef. "While I cannot share the full story now, I can say that we unfortunately have had some key staff departures." Youssef also took note of regulatory challenges, particularly in the P2P market and in the U.S.
The Paxful Wallet, said Youssef, will remain in operation in order for customers to retrieve their funds. Customers are being encouraged to transition to self-custody or use other service providers like Bitcoin payments company Bitnob and newly created peer-to-peer marketplace, Noones.
In December, Paxful suspended the trading of ether on the marketplace, citing the network’s switch to proof-of-stake from proof-of-work as a reason for the move. Since then, the platform has only been trading bitcoin.
Speaking on Twitter Spaces following this morning's surprising announcement, Youssef said there were concerns about the safety of customer funds thanks to a lawsuit by Paxful co-founder Artur Schaback. “I couldn’t guarantee the security of the platform,“ Youssef said. ”This is why this thing had to go down.”
“[Schaback] was pissed, so he sued the company and his litigation team was really nasty,” Youssef said. “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.”
https://www.coindesk.com/business/2023/04/04/peer-to-peer-bitcoin-exchange-paxful-to-suspend-operations/
RE: Paxful Suspends Operations - Omniscient - Apr 4, 2023
Damn, you beat me to this. Was just about to post it.
Never did think Paxful was a good service but I still hate seeing some of these legacy sites die out.
This is an interesting recommendation they posted too...
https://noones.com/
RE: Paxful Suspends Operations - SUI-3183372 - Apr 4, 2023
(Apr 4, 2023 01:03 PM)Omniscient Wrote: This is an interesting recommendation they posted too...
https://noones.com/
Declare bankruptcy and start over in a new country with a new name.
RE: Paxful Suspends Operations - Astonished - Apr 4, 2023
I always find the threads in the crypto section really interesting to read like this. I'm a noob when it comes to the knowledge of how cryptos actually work, the blockchains and forks of coins, the actual technology etc etc etc... the stuff you guys are smart with. I know buying selling and trading crypto and the very simple laws around it.
Apologies if this is a stupid question or something you've heard before. When there are big issues with crypto services and exchanges in general is there a likelihood that these issues will actually impact the value of assets like bitcoin and the rest of the cryptos either negatively or positively, or is it more of a like, hey don't use this service sort of thing?
RE: Paxful Suspends Operations - Rastoko - Apr 4, 2023
The Bitcoin space needs an uncensorable, private and secure P2P exchange.
https://bisq.network/ fixes this.
RE: Paxful Suspends Operations - Vibe - Apr 4, 2023
(Apr 4, 2023 01:03 PM)Omniscient Wrote: Damn, you beat me to this. Was just about to post it.
Never did think Paxful was a good service but I still hate seeing some of these legacy sites die out.
This is an interesting recommendation they posted too...
https://noones.com/
Lmao that site just gives off cash grab vibes
RE: Paxful Suspends Operations - Sempene - Apr 4, 2023
Im glad paxful is gone.
So many scammers and you could get your account locked for no reason
RE: Paxful Suspends Operations - Omniscient - Apr 4, 2023
(Apr 4, 2023 01:14 PM)BV1 Wrote: Declare bankruptcy and start over in a new country with a new name.
I got that vibe too. Not sure why these crypto companies don't HQ in El Salvador now that it's so Bitcoin friendly and now no taxes too on tech companies.
RE: Paxful Suspends Operations - iNviZ - Apr 5, 2023
(Apr 4, 2023 05:16 PM)Omniscient Wrote: I got that vibe too. Not sure why these crypto companies don't HQ in El Salvador now that it's so Bitcoin friendly and now no taxes too on tech companies.
Seems a lot of exchanges are going to Europe? Fuck it we should move to Elsavador!
RE: Paxful Suspends Operations - nelz - Apr 5, 2023
(Apr 5, 2023 02:37 AM)Lowkey Wrote: Bitfinex just sent out the "withdrawal all your funds asap" email earlier yesterday.
Rough times
Damm really? I have a few $ in Bitfinex. Only joined it to buy Radix lmfao. They have kyc now so hopefully don't have to provide to withdraw.
RE: Paxful Suspends Operations - SUI-3183372 - Apr 5, 2023
(Apr 5, 2023 02:37 AM)Lowkey Wrote: Bitfinex just sent out the "withdrawal all your funds asap" email earlier yesterday.
Rough times
Bittrex and Coinex have sent me similar emails over the last ~2 weeks.
RE: Paxful Suspends Operations - Yin Yang - Apr 5, 2023
(Apr 5, 2023 07:39 AM)BV1 Wrote: Bittrex and Coinex have sent me similar emails over the last ~2 weeks.Same here, I’m hoping KuCoin & mexc aren't next on the list.
RE: Paxful Suspends Operations - Sempene - Apr 5, 2023
(Apr 5, 2023 07:39 AM)BV1 Wrote: Bittrex and Coinex have sent me similar emails over the last ~2 weeks.
That has to be a scam email.
I have not got anything from any of them.
Send mail to them and ask if they did send you the email.
RE: Paxful Suspends Operations - Migos - Apr 5, 2023
Someone i trade with regularly is using the noones now says its the same thing the same staff ect.
RE: Paxful Suspends Operations - SUI-3183372 - Apr 5, 2023
(Apr 5, 2023 10:09 AM)Sempene Wrote: That has to be a scam email.
I have not got anything from any of them.
Send mail to them and ask if they did send you the email.
Sorry, I was referring to them ceasing operations in the US, not shutting down entirely.
Coinex: https://cryptoslate.com/coinex-to-stop-serving-all-u-s-customers/
Bittrex: https://bittrex.com/discover/important-message-for-bittrex-u-s-customers