Paxful co-founder says don’t use Paxful for crypto trading

Ray Youssef suggested Paxful customers stop trading cryptocurrencies on the Paxful platform.

Paxful was a popular P2P Bitcoin trade platform a few years back. Later entry of integrated banking-supported crypto trade platforms degraded the popularity of this platform. In April of this year, a controversy started between Paxful co-founders Ray Youssef and Arthur Schaback. Youssef alleged that Arthur refused to pay salaries to the employees and after that Paxful platform suspended all the services & later restarted in May of this year. 

: Paxful is back online.

Over the next couple of days, we'll be gradually restoring functionality to the marketplace.

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Thank you to everyone for your support!

https://t.co/UApEgHxLg5

— Paxful (@paxful) May 8, 2023

On 8 July 2023, Youssef noted that the Paxful team removed proof-of-reserves (PoR) from the platform. On behalf of this issue, he suggested people remain aware of the Paxful platform.

Paxful has taken down its proof of reserves. I ask everyone to cease trading until we get to the bottom of this! https://t.co/qKtpA8DEic pic.twitter.com/p0JDXRCZEp

— Ray Youssef (@raycivkit) July 7, 2023

PoR is online cryptographic proof, which represents the amount of holding funds by the firm, which may belong to customers as well as company funds. Over the past 7 months, the majority of the crypto firms reported their reserved holdings via PoR to ensure that they are holding customers’ funds safely. 

Here Paxful co-founder indirectly claimed that the Paxful team probably is not holding sufficient funds against customers’ deposits and that may be the reason why they removed PoR from the website.

Youssef also said that it is not a big deal to provide PoR because he knew everything about it when he was running the company with full transparency.

Many crypto Twitter users said that it is better to leave the Paxful platform forever, as every month Paxful & its co-founder came up with a new controversy.

After the downfall of the second top-ranked crypto exchange FTX, the majority of the crypto Investors are not confident with the centralised crypto services. In this situation, people are favouring the use of self-custody crypto wallets & Defi exchange to trade crypto assets. 

Read also: US presidential candidate Robert Kennedy Jr holding Bitcoin

Paxful co-founder says don’t use Paxful for crypto trading

 

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