“I gave up my title as CEO to unfreeze these accounts and am also in hazard of being in contempt of court,” stated Ray Youssef.
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The CEO of look-to-look crypto market Paxful has launched the unfreezing of 88% of beforehand frozen consumer accounts more than a week after suspending operations.
In an April 16 Twitter thread, Paxful CEO Ray Youssef stated roughly $4.4 million in frozen funds remained on the platform after workers had unfrozen 88% of existing accounts. Based on Youssef, the unfreezing of accounts had been carried out “with out a engineers or compliance folks,” claiming all remaining frozen funds had been “within the hands of” United States monetary regulators.
Youssef stated even if roughly 3% of entire consumer funds had been aloof frozen, he had made the unfreezing his “closing act” as Paxful’s CEO:
“I gave up my title as CEO to unfreeze these accounts and am also in hazard of being in contempt of court,” wrote Youssef. “That’s what I did besides alot of sleepless nights. Nothing more I will maintain but sleep nicely tonight. Integrity trumps fret.”
4.4m of frozen funds remain in Paxful, about 3.3% of entire buyer funds. We freed an entire of 3m this yr through immense compliance effort. These that would perchance remark that I am by some means destroying my reputation to steal 4m bucks are angry. I don’t have a designate 4million or 4 trillion. pic.twitter.com/MU6GdUweZF
— Ray Youssef (@raypaxful) April 16, 2023
The “contempt of court” remark become likely linked to ongoing litigation between Youssef and Paxful co-founder Artur Schaback, who helped open the platform in 2015. Schaback claimed in court the firm had been spellbinding within the misappropriation of funds, cash laundering and evasion of U.S. sanctions. Youssef steered Cointelegraph on the time the allegations had been “ridiculous.”
The announcement adopted the suspension of operations for Paxful customers on April 4. At the time, Youssef stated there had been some “key workers departures,” citing “regulatory challenges” the platform become facing. The CEO had already approved refunds for Receive program customers suffering from the crumple of Celsius months prior.
