Peer-to-peer crypto transfer platform Paxful is closing due to a sharp reduction in staff and difficulties around market regulation.
Cryptocurrency platform for peer-to-peer exchange of cryptocurrencies Paxful is closed. The head of the company announced this on the official website. According to the statement, the site went into closure due to a sharp reduction in staff and difficulties around market regulation. Paxful CEO Ray Yousef noted that he could not disclose the details of the closure. At the same time, he urged users to withdraw cryptocurrency to third-party wallets.
Earlier, Paxful promised to cover the financial losses of the victims of the collapse of the crypto-credit company Celsius Network until the end of March. The payouts were limited to customers of the Paxful Earn program, which operated through a partnership with Celsius. The amount of payments is not specified, however, the media report that in total the platform paid out only $250,000.
Paxful was founded in 2015. Initially, the service provided services for the exchange of various cryptocurrencies, but in December 2022 it changed its position. Then Ethereum (ETH) was removed from the listing of the site, citing a high level of centralization and a large number of scams around the cryptocurrency.
In February 2023, another cryptocurrency exchange service, LocalBitcoins, closed. Then it was noted that the reason for the failure was operational losses against the backdrop of the “crypto winter”.