- Paxful will temporarily cease operations.
- The CEO of the exchange, however, said that they are not sure whether it will resume operations or not.
- It is the second peer-to-peer crypto exchange to be shut down.
Paxful CEO Ray Youssef has published a post The peer-to-peer (P2P) exchange will suspend its marketplace, stating on the exchange’s website. Ray went on to state that he is not sure whether the exchange will resume operations.
This is the second popular P2P exchange to close after 2023 LocalBitcoins Announces Shutdown in February.
Major Employee Departures and Regulatory Challenges
Citing the departure of key employees and regulatory challenges, the CEO said in the post:
“This will probably come as a big shock to many. While I cannot share the full story right now, I can say that unfortunately we have lost some key employees. In addition, regulatory challenges for the industry continue to grow , especially in peer-to-peer markets and most in the US. While we work through these issues, we have taken the safest option and ask you to explore self-custody and trade elsewhere .
The CEO said that the foremost priority at this point of time is the safety of customers’ funds and advised customers to make withdrawals wherever possible. He has gone ahead to recommend withdrawing self-custody wallets exodus and Mun.
Ray also said that Paxful will offer an easier migration to other P2P options for non-US customers. He highlighted three P2P exchanges namely Nuance, Bitnob and Yellow Card.
The Paxful wallet will however remain operational for customers to retrieve their funds.