The year 2022 contained very negative news for the cryptocurrency market. Leading peer-to-peer firm Paxfulhas decided to cease operations indefinitely. CEO Ray Youssef wrote a detailed note on the firm’s website highlighting the closing. He started by highlighting how the company sees the debut of prominent team members.
Today, Paxful has decided to suspend its marketplace. We are not sure if he will come back. This will probably come as a big shock to many. While I can’t share the full story at this time, I can say that unfortunately some of our key personnel have left.
The CEO also made a statement on Twitter, noting the repercussions of the lawsuit filed by the firm’s co-founder Artur Schaback. Youseff added:
My co-founder sued the company and me. I’m in trouble with a lawsuit right now.
According to the CEO, the lawsuit also resulted in the departure of senior staff. This was a critical reason that led to the closure of the market place.
Is Paxful Struggling With Regulators?
Koinfinans.com As we have reported, it is understood that regulations regarding the crypto money market have come into play in the United States. Youssef highlighted the challenges P2P networks face in the region. Paxful CEO also said:
Regulatory pressures for the industry continue to increase, particularly in the peer-to-peer market and most heavily in the United States. While working on these issues, we have chosen the safest option and we ask you to explore self-hiding and trading elsewhere.
However, the latest news is not very positive for the sector. Pressures and closing brokerage firms are the biggest barriers to people trading cryptocurrencies. It is noteworthy that Paxful ceased operations two months after LocalBitcoin was shut down. While sites like Binance offer P2P trading, Paxful and LocalBitcoin were among the few well-known P2P companies.
It is also mentioned in the press that the company has gone backwards for the last five years and has not been able to overcome the regulatory pressure despite the struggle.
When most of the exchanges and banks are struggling to provide 100% withdrawal.
Paxful is allowing 100% withdrawal on EXIT.
No drama ….No issues.
In fact, just two days back @raypaxful returned the funds of users whose money was lost in Celsius.@raypaxful is RAY OF HOPE.
— Kashif Raza (@simplykashif) April 4, 2023
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