Peer-to-peer exchange Paxful has announced it will suspend its marketplace, noting that the decision is expected to be final. The company’s CEO, Ray Youssef, announced the decision in a message published on his website.
“Paxful is suspending its marketplace today. We’re not sure we’ll be back in business.” can be read in the post.
Bitcoin peer-to-peer markets are getting getting a lot more pressure. @paxful just suspended its marketplace. pic.twitter.com/UKLkICZcfm
— street ⚡️ (@callebtc) April 4, 2023
Youssef he added, that he cannot share more details about the exact reasons behind the decision. However, he revealed that some staff layoffs have proved critical for the company.
Back in December, Paxful stopped trading ether on its marketplace. He cited the network’s transition to proof-of-stake as the reason for the move, and since then the platform has only traded in bitcoins.
What happens to customers?
According to the note, the Paxful Wallet will remain active for customers to receive their funds back. Users are encouraged to switch to self-custody. They were also advised to take care of their recovered assets, citing Exodus Wallet and Muun Wallet as safe solutions.
Youssef said that their main priority right now is to preserve their clients’ funds.
“I could not guarantee the safety of the platform. That’s why this thing had to happen.” Paxful’s CEO stated.
Youssef also addressed the regulatory challenges, especially those in the P2P market and in the United States.
“For the past five years, we have done everything we can to try to meet the highest standards. But the regulators still don’t get it, and that’s painful to see.” said the CEO.