Paxful CEO Resigns, Creates Public Trust to Help Frozen User Funds

we discuss the resignation of Paxful CEO Ray Youssef and his commitment to creating a Public Trust to compensate users who lost money due to frozen accounts. We also cover Youssef's concerns about his co-founder's access to user funds, and the appointment of a court-appointed custodian to take control of Paxful's operations.

Ray Youssef, announced on April 21 that he was resigning from his position. He had concerns about the future direction of the company, particularly regarding his co-founder's access to user funds. Youssef didn't trust his co-founder to handle these funds correctly.

Despite Youssef's efforts to unfreeze 88% of user funds, approximately $4.5 million of customer funds were still frozen. Youssef had even offered to sell his shares to his co-founder for a very low price, with the condition that the co-founder takes necessary compliance measures to unfreeze the remaining accounts. But the co-founder refused.

To help Paxful users who lost money due to the frozen accounts, Youssef decided to create a Public Trust using his personal shares in Paxful. He pledged to put 99.9% of his shares, which represent over 45% of the company, into the trust. The funds generated by these shares would be used to compensate Paxful users who lost money.

Youssef also committed to transparency and honesty in the wake of his resignation. He expressed his desire to make Paxful an example of how a Bitcoin company can overcome challenges, even in the face of suffocating U.S. Rules and a person who wants too much and doesn't care about others."

In the meantime, Srinivas Raju, a court-appointed custodian, has taken control of Paxful's operations and management. He will work to stabilize the company and make a recommendation to the court on how Paxful should proceed.

Overall, Youssef's resignation and decision to create Public Trust reflect his commitment to doing the right thing for Paxful's users, even in difficult circumstances.

In the Conclusion

The CEO of Paxful, Ray Youssef, quit his job and plans to use his shares to make up for frozen user funds. He wants to be transparent and honest, even in difficult situations. A court-appointed custodian will help the company move forward. Trust, transparency, and accountability are important in cryptocurrency.