•Paxful, a peer-to-peer bitcoin exchange, recently resumed operations after being shut down for over a month due to safety concerns.
•The company’s CEO had expressed concerns related to a lawsuit from its co-founder Artur Schaback.
•CoinDesk spoke with both co-founders and multiple ex-employees, who reported that the business suffered from management lapses.
Paxful Resumes Operations After Temporary Suspension
Paxful, a peer-to-peer (P2P) bitcoin exchange, has resumed operations after being shut down for over a month. The platform was suspended in April after the CEO expressed concerns about the safety of customer funds owing to a lawsuit from its co-founder Artur Schaback.
CEO Cites Safety Concerns Related to Lawsuit
In early April, Paxful faced a difficult decision to temporarily suspend the marketplace in order to protect customers and ensure the health of Paxful’s future. The suspension was prompted by Ray Youssef’s concern regarding customer funds in light of Schaback’s lawsuit against Youssef and Paxful for wrongful termination, among other reasons.
Ex Employees Report Management Lapses
CoinDesk spoke with both co-founders and multiple ex-employees who reported that their relationship had been difficult for some time and that there were severe lapses in management professionalism. According to Schabeck, who is looking for an out of court settlement with Youssef, the two are currently owned by a custodian who serves as director alongside them both.
Wallet Remained Fully Operational During Suspension
During the suspension period, users were able to use Paxful Wallet which remained fully operational while they were also offered alternative P2P platforms on which they could continue trading on.
Conclusion
After months of uncertainty and difficulties within Paxful’s management team, it appears that the company is back on track and ready to resume operations safely for all customers involved.