Paxful, an American corporation that caters to a global community, has finally ceased operations.The company’s CEO, Ray Youssef announced on April 4th via a twitter space, that it would be closing its doors after failing to meet up with regulatory authorities, admitting staff shortage and lawsuit.
The Paxful platform was founded in 2015, and has become "the largest Bitcoin platform in Nigeria” serving around 1.5 million customers in Nigeria. It offers services such as instant payment options, money transfers and remittances, peer-to-peer (P2P) lending, escrow services and more.
Co-founder and CEO Ray Youssef revealed this information via twitter, stating that Paxful will be halting its marketplace today, and is uncertain as to whether it will return. He also emphasized that he was currently facing a lawsuit in addition to difficulties with American regulators who had caught up to their pace in the previous five years, being dissatisfied with their operations, even after spending millions on compliance.
It is speculated that the lawsuit was brought by his co-founder Artur Schaback, who accused Youssef of excluding him from the company, withholding crucial information about Paxful's business dealings, and engaging in fraudulent fund transfers in a lawsuit against Youssef in Delaware Chancery Court mid-January. It should be noted, though, that the cofounder was dismissed from the team just over a year ago on the basis of incompetence and disruptive bad behavior, according to the CEO.
Notwithstanding the country's restrictions on bitcoin and cryptocurrency in general, Nigeria ranked eighth out of 154 nations in the Chainalysis 2020 Geography of Cryptocurrency Report for adoption and usage. When combined, these two Nigerian cities—Lagos and Ibadan—make up a list of the top 50 cryptocurrency hubs in 2022. They have both been named as cryptocurrency hubs by a global accounting services company. Lagos (at number 14) and Ibadan (at number 24).
What comes next after Paxful's closure
Many people are wondering what will happen to the peer-to-peer market now that the Paxful has given in to regulatory pressure and internal strife, causing Tuesday's shutdown.
Due to its reliable services, CordialExchange has over the years established a familiar brand among Nigerian giftcard and bitcoin traders. On CordialEx, you can purchase and trade Bitcoin without having to worry about safeguarding your money while saving time too. It has a mobile app available on the Google Play Store and the Apple Store, allowing throngs of clients to access its services whenever and wherever they choose.
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Many people are wondering what will happen to the peer-to-peer market now that the Paxful has given in to regulatory pressure and internal strife, causing Tuesday's shutdown.
