- Paxful was closed in the last month.
- A legal dispute between Paxful’s co-founders had disrupted the exchange’s operations.
- Paxful Wallet remained open during the shutdown.
Paxful announced its reopening on May 8 after a shutdown of a month. The P2P exchange has said it will slowly restore services over the next days.
𝐁𝐑𝐄𝐀𝐊𝐈𝐍𝐆 𝐍𝐄𝐖𝐒: Paxful is back online.
Over the next two days, we will gradually restore the functionality of the marketplace.
Thanks to all for your support.
— Paxful (@paxful) May 8, 2023
Paxful’s shutdown announcement on April 4th 2023 gave users alternative options for transferring their assets, even though the Paxful Wallet remained open. After the closure of LocalBitcoins, the P2P exchange closed sent shockwaves through the crypto market.
Paxful’s current owner is a custodian
Paxful’s closure was the result of tensions that existed between Artur Schaback and Ray Youssef, co-founders. Schaback was hoping for the P2P Exchange to resume operation, while Youssef suggested new providers to users of Paxful.
According to sources, Paxful is currently under the management of a custodian who acts as a company director and “tie-breaker” alongside the two cofounders Ray Youssef and Artur Schabeck.
Ray Youssef left his role at Paxful, and donated his own company shares to the fund that was created to compensate Paxful’s shares. Paxful was able to regain access to 88 percent of its funds by April 17th, although $4.45 million remained in a frozen state due to a legal dispute between co-founders.
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