Ray Youssef, a Bitcoin marketplace called Paxful’s co-founder, has claimed that the company will be administered by a custodian. In addition to this, he also assured the creditors of the firm by saying that he is not going to flee with the funds.
A couple of weeks back, Paxful announced that it was terminating its activities while it remained ambiguous whether the company would ever restart its operations.
Paxful’s CEO Ray Youssef Says He Will Not Damage His Reputation by Taking Away Funds
As per a thread of posts shared by Ray Youssef on Twitter, he will soon leave the post of the chief executive officer of Paxful. The executive mentioned that the platform is currently being administered by a custodian.
According to him, the custodian of the firm is a well-reputed law company based in Delaware. Along with this, he added that he will report to the custodian company till his resignation which will take place tomorrow.
He repeated his point of view that the custodian platform is now controlling the entirety of the activities and the funds of the company. The executive additionally observed that the ecosystem of Paxful still possesses a huge amount of nearly $4.4M in its frozen funds. It accounts for 3.3% of the cumulative client funds that the consumers cannot redeem.
The executive additionally guaranteed the creditors of the platform that he will now leave the firm while taking the fund with him. While justifying his stance in this matter, he stated that this would be very destructive for his reputation.
Nonetheless, as his conclusive act while as the CEO of the firm, Youssef additionally revealed that nearly eighty-eight percent of the cumulative halted accounts got unfrozen following 10 days of hard work.
Keeping that in view, he advised the consumers to carry out the self-custody for the entirety of the crypto assets. Youssef also pointed out that the person does not have any capability to unfreeze the twelve percent proportion of the still locked accounts.
In his words, he does not have access to the funds of the clients. He even moved on to say that he never had any access to the respective funds.
He advised the customers not to trust any entities belonging to the United States and always prefer doing self-custody. The CEO added that there is a danger posed to him that he may be accused of contempt of court if he attempts to unfreeze the accounts. Apart from struggling for a considerable time, he commented, he could not do anything in this respect.
As mentioned by the marketplace, it facilitated consumer withdrawal at the time when it declared that it would execute a shutdown. The platform has up to 11 million clients. It was additionally considered a big peer-to-peer platform for crypto trading.
The closure of Paxful is witnessed in parallel to the increased efforts carried out by the US regulatory agencies for stringent scrutiny of the whole crypto industry.
US Congressman Warren Proposes the Removal of Gary Gensler from SEC’s Chairmanship
In the meantime, exclusive legislation has been introduced by Congressman Warren Davidson as the SEC’s political opposition is getting intensified. The Ohio Representative declared that Gary Gensler should be removed from the chairmanship of the securities regulator of the United States as the organization had transgressed its limitations in the case of the crypto market.