Paxful co-founder: Committed to using 45% of personal shares to resolve user fund freezing issues

2023-04-23 09:45:40

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ChainCatcher news, Ray Youssef, the co-founder of Paxful who previously resigned as CEO, has committed to placing 99.9% of his 45% personal stake in Paxful into a public trust fund to address the issue of frozen user funds and ensure the reliability of the Paxful wallet.

Ray Youssef stated that 88% of the frozen user funds have been unfrozen, and currently only about 3.3% of customer funds remain in the Paxful wallet, totaling just under $4.5 million. After repaying the assets of frozen Paxful users, any remaining funds will be directly used for the Built With Bitcoin Foundation to build schools.

Due to a deadlock between Ray Youssef and another co-founder regarding the company's direction, both parties have agreed to appoint Srinivas Raju from the law firm Richards, Layton & Finger (appointed by court order) as the custodian of Paxful throughout the process. Srinivas Raju now has full power and control over the company's operations and management, and will assist in stabilizing Paxful over the next month while preparing to present business recommendations for Paxful to the court. (source link)

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