Paxful Co-Founder Declares He Will Repay Users With His Own Money Because He Doesn’t Want to Go to Prison
The CEO of Paxful stated that he would use his own money to reimburse consumers and avoid prison time.
Ray Youssef, CEO and co-founder of Paxful, a peer-to-peer Bitcoin exchange in the United States, announced on April 6 that he is working on a plan to reimburse users’ funds with his own money in order to comply with the law and avoid falling into deeper legal issues following the abrupt closure of his exchange.
Youssef stated that he faces prison time if he does not comply with court orders regarding the return of Paxful’s suspended funds, which prompted him to take such drastic action.
The co-founder of Paxful explained that he is taking such a risk because otherwise, funds may “disappear” and users may never be able to retrieve them. However, he requested the community’s forbearance as he completed this task.
Youssef stated in an interview that the majority of his problems stem from a legal dispute with fellow Paxful co-founder Artur Schaback, who was dissatisfied with his departure and accused Youssef of excluding him from internal operations and conducting fraudulent fund transfers.
Since his former partner was dismissed more than two years ago for various reasons, including “incompetence and misconduct,” refusing to participate in the company’s internal investigations, he added that Youssef’s dismissal was “like a horrible divorce.”
Prior to confronting the current problems, Youssef’s objective was to create a network of decentralized, non-custodial Bitcoin marketplaces that would become “the most exciting thing since Bitcoin.” This ambition, however, appears to have been extinguished by the regulatory issues that plagued the company and the litigation filed by his previous business partner.
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