Former Paxful CEO warned users not to use the platform after scams increased! This warning from former Paxful CEO Ray Youssef has caught the attention of cryptocurrency investors! Here are the details…
Following Paxful’s reopening, former Paxful CEO Ray Youssef has warned users!
As we reported as Kriptokoin.com, the founding partner of the company recently announced that peer-to-peer trading (P2P) was opened, and he stated that the P2P platform was operational, and that it was managed by a Delaware lawyer. After that, the statement from the former CEO of Paxful was not delayed. Paxful co-founder Ray Youssef warned to stay away from the platform after fraud complaints.
Paxful relaunched on May 8. Since then, users have complained about being scammed on the platform. A user named Mitch, who reached Ray Youssef on Twitter, stated that he was defrauded.
Ray please help just got scammed on paxful please help me get refund
— Mitch (@mitchkofficial) May 11, 2023
On top of that, Youssef stated that he was incapable of helping and was banned from the platform, adding, “I am no longer the CEO of Paxful and I have no control over anything that happens there. They banned me too. Good luck, don’t trust anyone.” However, Twitter user Mitch sought help, explaining that he had lost his eight-month savings of $660, but Paxful did not fix the problem. Youssef reiterated that he is not in a position to resolve the issue, adding that he has withdrawn his funds from Paxful and “will not trade there”.
I am no longer the CEO of Paxful and have no control over anything happening there. They banned me too. Good luck and trust no ones. #selfcustody https://t.co/c8Hh9mFXdk pic.twitter.com/IPOVnsp14x
— Ray Youssef (@raypaxful) May 11, 2023
Similarly, Twitter user Kamwana reported that he was selling crypto on the platform and that PayPal refunded the money due to incorrect receipt by “Goods and Services” instead of “Friends and Family”, but the moderator released the crypto funds to the buyer. Another Twitter user commenting on this post also said that he lost crypto as well.
https://twitter.com/zilizovoke/status/1656180715485052929
However, recent events on Paxful have given rise to a lot of speculation. Asked if the company had approached him with a hostile takeover, the former Paxful CEO said, “It was much worse than that.” gave the answer.
Most mad story you can imagine bro. Way worse than that
— Ray Youssef (@raypaxful) May 11, 2023
What had happened between Ray Youssef and Paxful?
As you know, Paxful closed in April and Youssef accepted the resignation of several key personnel. But he did not fully explain what was going on behind the curtain. Weeks later, Youssef warned people of the dangers of doing business with US-based financial companies, while saying that increased US regulatory pressure was to blame. Youssef’s words were as follows:
They will confiscate your funds and won’t even give you a reason because by law they can’t. The system itself was designed to harm you.
During this time, Ray Youssef’s final act as CEO was to say he was trying to unravel funds confiscated by US regulators. On April 21, Youssef announced his resignation from the company and promised to help users he couldn’t help at the time. Although the company has managed to recover 88 percent of the funds, approximately $4.5 million is still frozen. Cryptocurrency company Paxful currently has offices in Estonia, the UK, the Philippines, Dubai and St Petersburg and does important business outside of the US, but is headquartered in New York.
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