After suspending its marketplace activities due to key staff departures and regulatory obstacles in April 2023, Paxful, a peer-to-peer (P2P) Bitcoin (BTC) trading platform, announced it was back online.
𝐁𝐑𝐄𝐀𝐊𝐈𝐍𝐆 𝐍𝐄𝐖𝐒: Paxful is back online.
Over the next couple of days, we'll be gradually restoring functionality to the marketplace.
Thank you to everyone for your support!
— Paxful (@paxful) May 8, 2023
“After a month away, we’re happy to announce that the Paxful marketplace is back online,” the firm wrote, noting that it took the decision to temporarily suspend its platform last month in order “to protect all of our customers and Paxful’s future.”
“Over the last month, our team has worked diligently to get the marketplace back online with the safety and security of users paramount,” Paxful said.
When announcing the decision to suspend its operations in April 2023, Ray Youssef, the Co-Founder and CEO of Paxful, confirmed that this was due to regulatory challenges in the U.S, noting that all customer funds were safe and accounted for, encouraging users to withdraw their funds and consider self-custody.
“Regulatory challenges for the industry continue to grow, especially in the peer-to-peer market and most heavily in the U.S. While we work through these issues, we have taken the most secure option and ask you to explore self-custody and trade elsewhere,” Youssef said.
However, the suspension also came amidst a lawsuit by Co-Founder, Artur Schaback, who sued Youssef and the company for wrongful termination, among other reasons. According to U.S media, Shaback wants to leave the firm and is seeking a settlement and has said that Paxful is presently owned by a custodian who serves as a director, in addition to both he and Youssef.
“Right now we need the custodian because he’s a tiebreaker; otherwise we’re in a deadlock,” Schabeck said.
Youssef also appeared to be pushing a new company when he asked users to consider Noones, a new peer-to-peer (P2P) company that focuses on the Global South.
Later in April 2023, Youssef and two other Bitcoin ‘pioneers,’ Antoine Riard and Nicholas Gregory, released an academic white paper outlining the Civ Kit, a system designed to create a peer-to-peer (P2P) electronic market that is censorship-resistant and permissionless.
Civ Kit is defined as a blueprint for developers and entrepreneurs to build their own censorship-resistant and permissionless global marketplace.
According to the press release, the Civ Kit’s design will emphasize trust and reputation within the marketplace while borrowing and lending can be added by using a universal credit score for all traders calculated by a combination of success of trades (Web-of-Stakes) and Web-of-Trust techniques that act as a ‘trustless source of truth.’
The trio are working to integrate the new system to Noones.
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