The creator and CEO of Bitcoin marketplace Paxful, Ray Youssef, has guaranteed creditors that the financial system would be in the care of a custodian once he steps down. Additionally, he has given his creditors assurances that he won’t ‘run off’ with the money.
Paxful in the Care of a Custodian
Ray Youssef will leave his position as CEO of Paxful on April 18, as per a twitter thread he started on Twitter. He revealed that “the company is in the care of a custodian, which is a respected Delaware law firm,” while adding:
“I now report to them at least until I resign tomorrow. I have no access and have never had access to customer funds. Avoid US companies and always self custody!”
Youssef in Support of Self-Custody
The Paxful CEO said that by unfreezing the accounts, he will be “in danger of being in contempt of court.” However, as his “final act as CEO,” Youssef also revealed that 88% of all frozen accounts had been unfrozen after 10 days of work.
On the other hand, he promoted self-custody for all crypto users. Youssef has been supporting self-custody recently and this is not the first time. After the FTX exchange crashed and filed for bankruptcy in December, Youssef suggested to consumers that they attempt self-custody rather than putting their funds in unstable crypto trading platforms.
Paxful’s Unfortunate Closure
The platform’s sad closure was announced by Paxful’s soon-to-be-former CEO at the beginning of this month.
Although he did disclose the exact circumstances of the shutdown, he named a number of factors that contributed to the suspension of the market that delisted Ethereum (ETH) last year including important staff departures and regulatory issues that have grown commonplace in the United States.
Fall from Grace
As soon as the Bitcoin marketplace declared its closure, it claimed that it enabled consumer withdrawals. Paxful was a major peer-to-peer crypto trading platform with nearly 11 million users.
Its shutdown occurs at the same time as American regulators are paying closer attention to the cryptocurrency market and that the FTX fiasco is finally coming to an end.