(Kitco News) -
Paxful, the peer-to-peer Bitcoin marketplace, announced in an April 4 blog post that they will be suspending operations.
“Today, Paxful will be suspending its marketplace,” wrote Ray Youssef, Paxful’s founder and CEO. “We are not sure if it will come back.”
Youssef said that the full story could not yet be shared, but said “regulatory challenges for the industry continue to grow, especially in the peer-to-peer market and most heavily in the U.S.” and added that “some key staff departures” were a contributing factor.
“While we work through these issues, we have taken the most secure option and ask you to explore self-custody and trade elsewhere,” he said.
Youssef said that “customer funds are all accounted for,” and that the Paxful Wallet will remain up for customers to retrieve their funds. He suggested Exodus Wallet and Muun Wallet for U.S. customers, and recommended that customers outside the United States migrate to Noones, “a new P2P company dedicated to the Global South” which offers all the functionality of the Paxful platform. “I personally vouch for Noones, you can trust them,” he wrote. He also suggested Bitnob as a good Bitcoin option for African customers.
Later in the day Youssef hosted a Twitter Space to answer questions from the Paxful community, and he also tweeted “I’m not withdrawing my btc from @paxful until everyone else gets theirs out first.”
He also shared some details of internal conflict at Paxful which contributed to the demise of the marketplace. “Why such huge transaction fees to external wallet. I was charged almost $12 of fee why is that,” asked @teroman101. “Long story,” Youssef replied. “I fought for a cheaper wallet fees for years but my cofounder wanted new engines on his yatch.”
Youssef told customers that they intend to keep the wallet up for two years.
