Former Paxful CEO Ray Youssef expresses his concerns about the P2P exchange platform. Allegations of non-payment to former employees and misappropriation of customer funds are circulating, prompting users to withdraw their funds. However, given Youssef’s personal interests and the ongoing legal battle, these allegations should be viewed with caution.
Former Paxful CEO Ray Youssef recently warned users of the P2P exchange platform, raising concerns about the safety of their funds. The warnings follow an alert posted by an anonymous user on Reddit, claiming that Paxful no longer publishes its proofs of reserves, raising questions about the platform’s transparency.
Paxful, a mix-up?
According to the anonymous post, former Paxful employees claim not to have been paid, and rumors are circulating that customer funds are being used to cover company expenses. In addition, technical problems have reportedly been reported, including problems with transfers and access to the Lightning wallet.
The message on Reddit evokes a “FTX scenario“, referring to the recent incident at FTX, another renowned exchange platform. It calls on Paxful users to withdraw their funds from the platform as a precautionary measure.
However, it should be noted that Ray Youssef, since leaving Paxful, has tended to promote his own competing platform, CivKit, and to encourage users to leave Paxful. What’s more, he is currently engaged in a legal battle with original co-founder Artur Schaback, which may call into question his real motives.
While Youssef’s attacks on Paxful are self-serving, previous reports have also highlighted management issues within the exchange platform. Allegations of dubious management and internal conflicts have been reported, adding to the confusion surrounding Paxful’s current situation.
In any case, it’s always advisable to keep your funds on self-hosted wallets, which offer additional security by allowing access only to the holders of the private keys. Caution is the watchword when it comes to entrusting your funds to online platforms, whether controversial or not.