P2P Bitcoin Exchange Paxful Back Online After Temporary Suspension

The platform shut down in April after the CEO expressed concerns about the safety of customer funds owing to a lawsuit from its co-founder.

AccessTimeIconMay 8, 2023 at 5:49 p.m. UTC
Updated May 9, 2023 at 4:13 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Peer-to-peer (P2P) bitcoin exchange Paxful has resumed operations after being shut down for over a month, the company said in a blog post.

“After a month away, we’re happy to announce that the Paxful marketplace is back online,” the company wrote. “In early April, we faced a difficult decision to temporarily suspend the marketplace to protect all of our customers and Paxful’s future.”

Paxful shut down in April after CEO Ray Youssef expressed concerns about the safety of customer funds as a result of a lawsuit by co-founder Artur Schaback, who sued Youssef and the company for wrongful termination, among other reasons.

Shortly after the closure, CoinDesk spoke with both co-founders and multiple ex-employees and reported that their relationship had been difficult for a while and that the business suffered from severe lapses in management professionalism.

According to Schabeck, who is looking for a settlement and wants out of the firm, Paxful is currently owned by a custodian, who serves as a director in addition to both Schabeck and Youssef.

“Right now we need the custodian because he’s a tiebreaker; otherwise we’re in a deadlock,” Schabeck told CoinDesk.

During the suspension, the company said the Paxful Wallet remained fully operational for users, who were also offered a selection of peer-to-peer platforms to continue trading on.

Edited by Nelson Wang.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Helene Braun

Helene is a New York-based news reporter at CoinDesk, currently covering the criminal trial of infamous crypto mogul Sam Bankman-Fried. Helene is a recent graduate of New York University's business and economic reporting program and has appeared on CBS News and Nasdaq TradeTalks. She holds BTC and ETH.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.