Paxful CEO announces 88% of accounts unfrozen, $4.4M in funds remaining

The main enforcement serviceman of peer-to-peer crypto marketplace Paxful has announced the unfreezing of 88% of antecedently frozen idiosyncratic accounts much than a week aft suspending operations.

In an April 16 Twitter thread, Paxful CEO Ray Youssef said astir $4.4 cardinal successful frozen funds remained connected the level aft unit had unfrozen 88% of existing accounts. According to Youssef, the unfreezing of accounts had been accomplished “with nary engineers oregon compliance folks,” claiming each remaining frozen funds were “in the hands of” United States fiscal regulators.

Youssef said though astir 3% of full idiosyncratic funds were inactive frozen, helium had made the unfreezing his “final act” arsenic Paxful's CEO:

“I gave up my rubric arsenic CEO to unfreeze these accounts and americium besides successful information of being successful contempt of court,” said Youssef. “That is what I did too a batch of sleepless nights. Nothing much I tin bash but slumber good tonight. Integrity trumps risk.”

4.4m of frozen funds stay successful Paxful, astir 3.3% of full lawsuit funds. We freed a full of 3m this twelvemonth thru tremendous compliance effort. Those who would accidental that I americium someway destroying my estimation to bargain 4m bucks are mad. I don’t person a terms 4million oregon 4 trillion. pic.twitter.com/MU6GdUweZF

Related: Paxful shutdown hits Nigeria harder than the remainder of the satellite — Here’s why

The "contempt of court" assertion was apt related to ongoing litigation between Youssef and Paxful co-founder Artur Schaback, who helped motorboat the level successful 2015. Schaback claimed successful court the institution had been progressive successful the misappropriation of funds, wealth laundering and evasion of U.S. sanctions. Youssef told Cointelegraph astatine the clip the allegations were “ridiculous.”

The announcement followed the suspension of operations for Paxful users connected April 4. At the time, Youssef said determination had been immoderate “key unit departures,” citing “regulatory challenges” the level was facing. The CEO had already authorized refunds for Earn programme users affected by the illness of Celsius months prior.

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