Paxful CEO Warns Users: Stay Off Platform Amid Scams


  • Ray Youssef, the co-founder of Paxful, has warned users to stay off the platform amid complaints of scamming.
  • Paxful closed in April due to heightening U.S. regulatory pressure.
  • Youssef resigned from the company and vowed to make whole the users he could not help at the time.

Background on Paxful

Paxful is a peer-to-peer (P2P) marketplace that provides infrastructure for users to buy and sell cryptocurrency from each other. It closed in April due to heightening U.S. regulatory pressure, with former CEO Ray Youssef acknowledging the resignation of several key staff members but refusing to expand further on what else was happening behind the scenes.

Rise of Scams

After Paxful’s reopening, reports of scams began emerging — raising concerns about the integrity of the platform in its current state. As such, Youssef warned people to stay away from using it, citing how U.S.-based financial companies could confiscate user funds without providing a reason due to legal restrictions. He then announced his resignation and vowed to make whole those users he could not help at the time.

Unfreezing Funds

Youssef stated that he was working on unfreezing funds U.S. regulators had seized before his departure — his final act as CEO — while also assuring that safety measures were put in place for customers who wished to use Paxful’s services again upon its reopening.


Despite reassurances from Youssef over safety measures being implemented prior to reopening, many customers remain wary about using Paxful’s services due his warnings and past reports of scams occurring on the platform .