Paxful, a popular peer-to-peer (P2P) marketplace, has announced its return after suspending services in April 2023. The Paxful Wallet was still operational during this time. In a blog post on May 8, Paxful announced the resumption of the marketplace, which had over six million users globally. Regulatory hurdles and a legal tussle between co-founders were cited as reasons for the marketplace shutdown. Before the revival of the marketplace, 88% of customers’ accounts were unfrozen, and 3% remained frozen. Paxful’s former CEO, Ray Youssef, resigned from his position on April 18.
- Paxful’s announcement read:
“We know it has been a difficult time for many of our users, who were understandably surprised by the sudden suspension, however, we are delighted to be back so that we can continue to serve millions of people without financial access.”
- CryptoPotato previously reported on the Bitcoin P2P marketplace’s shutting down, leaving its wallet operational. The co-founder and former CEO, Ray Youssef, mentioned regulatory hurdles and staff departures as reasons for the shutdown.
- Youssef added that a legal dispute with another co-founder, Artur Schaback, further contributed to the company’s forced closure. Schaback sued both Youssef and the company, which Youssef described as «nasty.» Shortly after the suspension, Youssef said he was working towards refunding customers from his pocket to avoid jail time.
- Paxful was able to unfreeze 88% of customers’ accounts before the revival of the marketplace, leaving 3% still frozen.
- On April 18, the CEO announced his resignation from the top position.