Paxful bans former CEO days after resuming operations

Paxful, a peer-to-peer (P2P) crypto trading platform, has banned its co-founder and former CEO, Ray Youssef.

Paxful drama unfolds

This development comes just days after the company announced its return to operations. 

In response to a customer complaint, Youssef revealed that he is no longer involved in the leadership of the crypto firm, emphasizing his lack of control over ongoing events. 

The internal conflict between Ray and his fellow co-founder is mainstream knowledge. 

In several instances, Paxful clients have expressed their concerns by tagging Ray Youssef in various tweets, seeking clarification about the situation. 

In contrast, Paxful directly took to Twitter to express gratitude to its community for their patience during the gradual restoration of marketplace functionality. 

The company acknowledged that some users’ accounts were mistakenly banned and assured the public that their team is actively working to address and rectify the issue. 

The way forward

The tension between Paxful’s co-founders, Ray Youssef and Artur Schaback, has been an ongoing internal struggle within the crypto company. 

According to Youssef, the immediate trigger for Paxful’s temporary closure was the departure of the company’s engineers, a consequence of Schaback accusing Youssef of orchestrating a money laundering scheme using the operating, compliance, and security staff.

The precise details surrounding the feud between Youssef and Schaback are yet to be fully disclosed. 

However, their disagreements and the subsequent loss of key team members have significantly impacted Paxful’s operations. 

The banning of Youssef from the platform further highlights the extent of the internal turmoil within the company that is under new management.

As the crypto community reacts to the news, there are concerns about the implications for Paxful’s reputation and the trust users place in the platform. Transparency and effective resolution of internal conflicts will be crucial for Paxful to regain stability.

Youssef has previously preached about self-custody, making it clear that he has taken his funds off the platform, and would refrain from using Paxful in the future.

With the recent development, it remains to be seen how Paxful will navigate such difficulties and fear, uncertainty, and doubt (FUD), working towards restoring its marketplace’s functionality, and the trust lost among its users.