Paxful reopening after month-long shutdown

Paxful said May 8 that it will be reopening its services after a month-long shutdown.

The peer-to-peer crypto marketplace said that it will “gradually” restore market functions over the coming days. Paxful added on its website that its wallet remained functional during the shutdown and said that it provided users with access to alternative platforms.

Reports from Coindesk suggest that Paxful is now owned by a custodian who acts as a company director and “tie-breaker” alongside embattled co-founders Artur Schabeck and Ray Youssef. Coindesk obtained that information from Shabeck himself.

Strife between founders

Paxful first shut down operations on April 4, 2023. Though Paxful CEO Ray Youssef said in early private statements said the project team was “not sure if [Paxful] will come back,” Paxful itself suggested the halt was temporary on April 10.

Youssef later resigned from his position and contributed his personal company shares to a fund intended to compensate Paxful users.

The platform managed to restore access to 88% of funds by April 17. About $4.4 million remained frozen after that date due to a legal conflict between co-founders, as one party refused to pay compliance costs needed to unlock the funds.

Unlike many other companies that suspended user withdrawals over the course of 2022, Paxful has managed to recover without bankruptcy or restructuring proceedings.

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