Paxful’s Sudden Closure: The Dispute Between Co-Founders Artur Schaback and Mohamad (Ray) Youssef

On April 7th, it was reported that the fierce dispute between Artur Schaback and Mohamad (Ray) Youssef, two co founders of Paxful in the Bitcoin P2P market, in a Delaware court in the United States may be the real reason for Paxful’s sudden closure on April 4th. According to court documents, Schaback and Youssef jointly founded Paxful in 2015, and they are currently filing multiple charges against each other over their control of the company.

Foreign media: The real reason for Paxful’s two co founders vying for control of the company or platform closure

Introduction

On April 4th, the Bitcoin P2P market Paxful suddenly closed down, leaving its users in a state of confusion and chaos. While the company cited technical issues as the reason for the closure, recent reports suggest that the real reason behind it is a fierce dispute between the two co-founders of the company, Artur Schaback and Mohamad (Ray) Youssef. This article delves deeper into the dispute and its implications for Paxful.

The Origins of Paxful

Paxful was founded in 2015 by Artur Schaback and Mohamad (Ray) Youssef. The platform offered a secure and easy-to-use way for users to buy and sell Bitcoin in a peer-to-peer fashion. It quickly gained popularity among cryptocurrency enthusiasts and attracted a large user base.

The Co-Founder Dispute

The dispute between Schaback and Youssef began in late 2020. The two co-founders had been having disagreements over the company’s direction and control for some time. The tension escalated when Youssef allegedly changed the company’s bank account information without Schaback’s knowledge or consent, effectively freezing him out of the company’s finances.
Schaback responded by filing a lawsuit against Youssef in a Delaware court, accusing him of breaching his fiduciary duties and seeking to regain control of the company. In response, Youssef filed a counter lawsuit with similar accusations against Schaback.

The Implications for Paxful

The co-founder dispute has thrown Paxful into chaos. The sudden closure of the platform has left many users unable to access their funds or complete their transactions. The company’s social media accounts have gone silent, and its customer support has been unresponsive.
The closure has also caused a ripple effect in the cryptocurrency community, with many speculating about the future of Paxful and the impact of the dispute on the industry as a whole. Some have raised concerns about the security of their funds and whether they will ever be able to recover them.

Conclusion

The dispute between Artur Schaback and Mohamad (Ray) Youssef has had serious implications for Paxful and its users. The sudden closure of the platform has left many in limbo, and the future of the company remains uncertain. It is a reminder of the challenges that can arise in the volatile and often unpredictable world of cryptocurrency.

FAQs

Q1: Will Paxful reopen?

A: The company has not made any official statement on this matter. It is unclear whether Paxful will reopen or if the platform will remain closed indefinitely.

Q2: Is my money safe on Paxful?

A: It is difficult to say. The closure of the platform has raised concerns about the security of users’ funds. However, the company has not made any announcement about a potential data breach or hacking incident.

Q3: What does this mean for the cryptocurrency industry?

A: The dispute between Paxful’s co-founders highlights the challenges and risks faced by companies operating in the cryptocurrency space. It is a reminder that the industry is still in its early stages and that regulation and stability are needed to ensure its long-term success.