Paxful CEO Confirms $4.4 Million of Customer Funds Still Frozen

Bitcoin Paxful Market co-founder Ray Youssef assured creditors that the platform is under the supervision of a custodian and that he will not ‘run away’ with the funds.

Paxful announced a couple of weeks ago that it has ceased operations while it is not sure if the platform will reopen.

Paxful has 3.3% of customer funds frozen

According to his Twitter thread, Ray Youssef will step down as CEO of Paxful on April 18th. He noted that “the company is under the care of a trustee, a respected law firm in Delaware. I am now reporting to them at least until I resign tomorrow.”

He confirmed that the custodian now controls all funds and operations.

The CEO also noted that Paxful still had $4.4 million in frozen funds. It is about 3.3% of all client funds that cannot be withdrawn.

He also assured creditors that “Ray does not run away” with the money because to do so would “ruin his reputation”.

But as his “last action as CEO,” Youssef also revealed that 88% of all frozen accounts had been lifted after ten days. exhaustion. However, he called for self-custody for all cryptocurrency users.

Paxful CEO Ray Yousef Sahm Total balances owed to creditors

The soon-to-be CEO claimed he had “no authority” to unfreeze the 12% of accounts that remain locked.

He claimed, “I have no access and never have had access to clients’ money. Always avoid US corporations and self-custodial!”

The executive further stated that he “runs the risk of contempt of court” by unfreezing the accounts. In addition to having many restless nights, he said, “I can do nothing but sleep well tonight. Integrity trumps risk.”

US Legislative Crossfire Could Burn Cryptocurrency

The market stated that it facilitated customer withdrawals as soon as it announced its closure. With nearly 11 million users, Paxful has been a large peer-to-peer crypto trading platform. Its closure coincides with increased scrutiny by US regulators of the cryptocurrency industry and the eventual end to the FTX debacle.

Meanwhile, Congressman Warren Davidson introduced new legislation as political opposition to the US Securities and Exchange Commission (SEC) grew.

The Ohio State Representative announced that he wants Gensler removed from his position since the agency was overreaching in the crypto sector.

Hester Pierce, an SEC member who has been dubbed a “crypto mom,” also criticized the agency in statement Friday. She said, “Instead of embracing the promise of new technology as we have done in the past, we propose here to embrace stagnation, centralize power, incite expatriates, and welcome the extinction of new technology.”

Pierce fired the SEC for “solving non-existent problems” while applying a broad interpretation of the legislative meaning of “exchange”.


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