Paxful, a leading cryptocurrency marketplace, has announced its decision to wind down all operations by November 1, 2025, a month’s time. Amongst many, the marketplace is best known as a peer-to-peer (P2P) crypto exchange platform.
According to the company’s statement, this strategic choice is attributed to the lasting impact of historic misconduct by former co-founders Ray Youssef and Artur Schaback prior to 2023, coupled with unsustainable operational costs stemming from extensive compliance remediation efforts.
In the words of Paxful as published in its public statement, “This strategic choice follows the lasting impact of historic misconduct by former co-founders Ray Youssef and Artur Schaback prior to 2023, combined with unsustainable operational costs from extensive compliance remediation efforts. Paxful unequivocally condemns the past actions of its former co-founders, which are inconsistent with the company’s current values and ethical standards under new ownership.”
Absence of Long-Term Business Sustainability
Despite the challenges, Paxful states that it has undergone significant transformations over the past two years. As stated by the company, it has implemented a comprehensive compliance overhaul, balance sheet restructuring, and a complete renewal of its executive and global teams. It asserts that these efforts have yielded strong growth, and Paxful remains financially stable.
However, the decision to cease operations reflects, states Paxful, is a strategic assessment of long-term sustainability rather than insolvency or issues with current leadership.
User Funds and Wind-Down Process
Paxful has assured its users that it remains committed to the safe and secure return of all user funds. The company states that it would maintain open communication throughout the wind-down period, encouraging users to withdraw their balances as soon as possible to avoid delays.
Paxful’s leadership expressed gratitude for the opportunity to serve 14 million users across 140+ countries over the past decade and is dedicated to ensuring a smooth and transparent wind-down process.
Withdrawing funds immediately within the provided window is crucial for several reasons:
- Avoiding Delays: Paxful’s wind-down process may lead to unforeseen delays or complications, which could impact users’ access to their funds.
- Minimizing Risk: Leaving funds on the platform increases the risk of potential losses due to unforeseen circumstances, such as technical issues or possible security breaches.
- Maintaining Control: Withdrawing funds allows users to take control of their assets, ensuring they can manage their cryptocurrency holdings securely.
Read also: Paxful Suspension/ Shutting Down: Will the P2P crypto market also shut down?
Legacy and Future
As Paxful marks the end of its operations, the company thanks its loyal community for their trust and support over the years. While the platform’s wind-down signifies the end of an era, it also reflects the ever-evolving nature of the cryptocurrency landscape.
Paxful believes that it has established a legacy of shaping the future of digital finance, and its commitment to user safety and security will remain a benchmark for the industry.
About Paxful
Paxful was a pioneering borderless P2P payment network that offered safe, fast, and reliable access to the global economy through cryptocurrencies. Since its founding in 2015, the platform has connected over 14 million users worldwide, enabling them to move, earn, save, and store money. Paxful supported over 400 payment methods for buying and selling Bitcoin, USDT, and other digital and local currencies.
Read also: Introduction to Peer-to-Peer Crypto Trading Platforms: What it Means and How to Use Them
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