On July 7, Ray Youssef, the former CEO of Paxful, told users of the peer-to-peer crypto marketplace to stop trading on the platform. Youssef claimed that Paxful is now “just paying legal bills” and that “no African or any non-American should trust any IS corporation.”
Paxful’s Alleged Removal of Reserve Funds From Status Page Raises Concern
Following reports that Paxful, the peer-to-peer crypto marketplace, has removed the reserve funds amount from the status page, former CEO Ray Youssef advised users to cease trading. In his reply to a Twitter user who warned of an FTX-style collapse, Youssef suggested that users should consider switching to self-custody until “we get to the bottom of this.”
In addition to exposing the alleged removal of reserve funds from Paxful’s website, the unidentified social media user also claimed to have seen tweets from former employees who complained of not being paid all their dues after they left. The user also claimed to have heard rumors that Paxful was dipping into customer funds.
In another tweet, Youssef, in an apparent response to Paxful’s pledge to unfreeze $4.5 million in customer funds, reiterated his lack of confidence in the process, declaring:
I do not trust lawyers. Paxful is now just paying legal bills. No African or any non-American should trust any IS corporation. Don’t say you were [not] warned folks. My reputation I value over any shares in any company.
In early April, trading on the P2P marketplace was suspended due to regulations and what Youssef attributed to the departure of key personnel. However, after Paxful announced the resumption of services, Youssef, who had already left the organization, said he could not vouch for anything that is happening there now.
Since leaving Paxful, Youssef, who has more than 50,000 followers on Twitter, has not only urged users to abandon the platform but has routinely promoted Civkit which he founded. Although many of the followers have lauded Youssef’s efforts, some have accused him of being an “attention seeker.” He has also been accused of seeking to use his influence to harm rivals.
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