Paxful Pledges to Refund All Users of the Firm’s ‘Earn’ Product

As Celsius customers wait for the court to determine the crypto lender’s bankruptcy case, one of the company’s partners, Paxful, has promised to make its investors whole.

The CEO of the P2P (Peer-to-peer) crypto marketplace, Ray Youssef, announced on Wednesday that his firm had decided to refund users of its ‘Earn’ product. Paxful offered this product in collaboration with Celsius. It allowed users to earn interest on their Bitcoin.

Like many others, Paxful was forced to stop offering that product as funds got stuck in Celsius accounts.

Celsius suspended withdrawals last June after BTC’s price dropped below $20,000, causing the company’s DeFi (Decentralized Finance) loans to almost touch the liquidation point. The crypto lender filed for bankruptcy a few days after paying them off. Since then, only creditors who held their money in Celsius’ withhold accounts’ or ‘custody program’ have been able to access their funds.

Paxful CEO Tells Affected Users to Expect Refunds This Week

While revealing the news about refunds on his Twitter handle, Youssef wrote that he hadn’t had peace of mind since Celsius’ move to halt withdrawals. He then apologized to those affected and pledged that their funds would be available on their Paxful accounts in the course of the week.

Once again, Youssef reiterated his ‘integrity over revenue’ statement, saying that the decision to process refunds shows Paxful’s commitment to transparency along with putting its users above financial gains.

The Paxful boss made a similar statement last December when announcing that the platform would stop support for Ethereum trading. At that time, he called ETH a ‘foundation of granite’ while praising BTC as the suitable tool for liberating millions of people living in the Global South from economic discrimination.

Paxful’s Dominance in the Global South

Paxful appears to be dominant in the Global South. According to data from Coin Dance, the P2P platform has been generating a weekly volume of $35 million to $45 million for the last ten months, with users from Argentina accounting for over 50% of that figure.

Crypto analysts say this trend could be due to the high inflation rate in the country, driving people to use BTC as a hedge.