Ex-CEO of Paxful warns Users to Stop Trading on Paxful
Ex-CEO of Paxful warns about the crypto exchange's lack of 'Proof of Reserves', asking users to stop trading.
Ray Youssef, ex-CEO of Paxful, a well-known peer-to-peer cryptocurrency exchange, has given a public warning about Paxful. In a tweet on July 8, saying that Paxful no longer shows proof of how much cryptocurrency it has in its wallets.
Youssef asked people to stop trading until more is known. "Proof of Reserves", shows that an exchange has enough money to handle customer deposits and withdrawals, he explained. This is a way to prevent fraud, theft, or going bankrupt.
Despite Paxful not responding to Youssef's claims or explaining why it removed the proof of reserves, the exchange remains popular. Paxful was Started by Youssef and Artur Schaback in 2015, it claims to have more than 7 million users and accepts more than 300 types of payment.
