Paxful Co-Founder and CEO Ray Youssef saying $4.4 million, around 3.3% of total client funds, remain frozen on the platform despite releasing 88% of all frozen accounts in the last ten days.
Youssef advised his followers not to trust any American financial institution. He saying:
“For everyone in the Global South. NEVER work with any financial company in the US, not even one that serves Americans. They will confiscate your funds and won’t even give you a reason because they can’t by law. The system itself is designed to hurt you.”
88% of accounts unfrozen
In a Twitter of April 16 thread, Youssef detailed how he has been working to help users with frozen funds regain access to their assets. According to him, this is the final act of him as CEO of the peer-to-peer cryptocurrency trading platform.
Youssef noted that any accounts that have not been unfrozen are out of his control as US regulators are now in charge.
“I do not have access and have never had access to client funds. Avoid corporate America and always self-custody,” she said.
The CEO of Paxful aggregate that the company had unfrozen about $3 million this year. But that’s all it can do because the aggrieved co-founder who sued the company refused to pay the required enforcement to unfreeze the remaining assets.
He criticizes the US regulatory system.
Youssef blamed the recent problems with his platform on the US. regulatory system and advised users to avoid using US-based entities or opt for self-custody.
“Many see the United States as a world leader. My family does, that’s why we moved here. It is sad to see how a country that welcomed millions now excludes millions. I pray that it changes,” she said.
Paxful was one of the leading peer-to-peer exchanges for Bitcoin trading before close two weeks ago. At the time, Youssef claimed that the exchange had to shut down due to regulatory challenges, saying:
“[Despite the company] doing everything they can for the last five years to try to meet the highest standards, the regulators still don’t get it.”
While the Paxful Wallet remains up and running for users to get their funds back, not everyone is able to due to regulators freezing some assets.
The charge Paxful CEO Ray Youssef Reveals $4.4M In Frozen Client Funds, Warns Against US Financial Institutions first appeared in CryptoSlate.
