Ray Youssef, the former CEO of Paxful, recently advised users of the peer-to-peer crypto marketplace to refrain from trading on the platform. Youssef expressed concerns about Paxful’s current state, claiming that the company is solely focused on covering legal expenses and casting doubt on the trustworthiness of any international corporation, particularly for non-Americans and Africans.
The removal of reserve fund information from Paxful’s status page has further raised apprehension among users. In response to a Twitter user’s warning about a potential collapse similar to FTX, Youssef suggested that individuals consider self-custody options until the matter is thoroughly investigated.
Additionally, an unidentified social media user highlighted the alleged non-payment of former employees’ dues and rumors of Paxful dipping into customer funds. These claims, coupled with the removal of reserve fund details, have added to the growing uncertainty surrounding the platform.
Youssef reiterated his lack of faith in Paxful’s efforts to unfreeze $4.5 million in customer funds. He expressed his mistrust of lawyers and stated that Paxful is now primarily focused on paying legal bills. Furthermore, he emphasized the need for caution, specifically advising non-Americans and Africans to exercise skepticism towards any international corporations. Youssef prioritized his reputation over any ownership stakes in companies.
In early April, trading on the P2P marketplace was temporarily halted due to regulatory concerns and the departure of key personnel, as per Youssef. Even after Paxful announced the resumption of services, Youssef, who had already left the organization, distanced himself from its current operations, refusing to endorse any ongoing activities.
Since his departure from Paxful, Youssef, with a Twitter following exceeding 50,000, has actively encouraged users to abandon the platform while promoting Civkit, a venture he founded. While many of his followers support Youssef’s endeavors, some criticize him for seeking attention and attempting to harm competitors through his influential position.
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Frequently Asked Questions (FAQs) about Paxful, cryptocurrency marketplace
Q: What is the reason behind the former Paxful CEO’s call to cease trading on the platform?
A: The former Paxful CEO, Ray Youssef, has urged users to stop trading on the platform due to concerns over the alleged removal of reserve funds from the status page and his lack of trust in any international corporation, particularly for non-Americans and Africans.
Q: What additional issues have been raised about Paxful?
A: Alongside the removal of reserve fund information, there have been claims from an unidentified social media user regarding non-payment of dues to former employees and rumors of Paxful accessing customer funds, further fueling concerns about the platform.
Q: What is Ray Youssef’s stance on Paxful’s efforts to unfreeze customer funds?
A: Ray Youssef expressed his lack of confidence in Paxful’s process to unfreeze $4.5 million in customer funds, stating his distrust of lawyers and suggesting that Paxful is primarily focused on paying legal bills rather than resolving customer concerns.
Q: What has Ray Youssef been doing since leaving Paxful?
A: Since departing from Paxful, Ray Youssef has not only encouraged users to abandon the platform but has also been actively promoting Civkit, a venture he founded. While he has gained support from many followers, he has also faced criticism for being labeled an “attention seeker” and accused of using his influence to harm competitors.
Q: How did the temporary suspension of trading on Paxful come about?
A: Trading on the Paxful peer-to-peer marketplace was temporarily halted in early April due to regulatory reasons and the departure of key personnel, according to Ray Youssef. Although services were later resumed, Youssef, who had already left the company, distanced himself from its current operations and declined to endorse any ongoing activities.
More about Paxful, cryptocurrency marketplace
- Former Paxful CEO Ray Youssef Urges Platform Users to ‘Cease Trading’
- Paxful’s Alleged Removal of Reserve Funds From Status Page Raises Concern
- Ray Youssef’s Twitter Account
- Paxful Official Website
- Civkit Official Website