Paxful, a prominent peer-to-peer (P2P) Bitcoin exchange, has returned to full operation after a month-long suspension. According to the company’s blog post, the marketplace had to be temporarily halted in early April due to concerns over customer funds and to protect the platform’s future.
Co-Founder lawsuit triggers platform shutdown
The suspension came after a lawsuit filed by co-founder Artur Schaback against CEO Ray Youssef and the company. Schaback accused Youssef of wrongfully terminating his access to company resources during his paternity leave, while Youssef cited Schaback’s incompetence and poor behavior as reasons for his dismissal. The lawsuit and strained relationship between the co-founders significantly contributed to the platform’s shutdown.
During the suspension, Paxful assured users that all customer funds were secure and advised them to withdraw them for self-custody. The Paxful Wallet remained fully operational for users during this time. The company also provided non-US users with alternative P2P platforms like Noones to facilitate an easy migration process.
Meanwhile, LocalBitcoins, a Finland-based competitor of Paxful, has remained inactive since shutting down two months before Paxful’s suspension. The rival platform cited a “very cold crypto winter” for its closure.
