Ray Youssef, the former CEO of Paxful, a well-known peer-to-peer cryptocurrency exchange, has raised concerns and publicly cautioned about his former company.
In a tweet shared on July 8, Ray Youssef stated that Paxful had eliminated the display of proof of reserves, which previously showed the amount of cryptocurrency held by the exchange in its wallets.
Youssef’s Message: Urgent Request to Halt Trading and Seek Truth
In his post, Youssef earnestly requested everyone to pause trading activities until the truth about the situation is uncovered. He clarified that this message is not financial advice. Interestingly, he highlighted that during his tenure as the company’s CEO, Paxful consistently maintained complete transparency regarding its reserves. Youssef expressed his belief that ensuring transparency in this matter should be a straightforward task.
Proof of Reserves serves as a document that cryptocurrency exchanges use to show they have enough funds to cover customer deposits and withdrawals. It helps safeguard against fraud, theft, or bankruptcy. Paxful’s help center previously had a link where they shared their proof of reserve on their website. However, that link is currently unavailable.
Paxful Silent on Youssef’s Accusation of Removing Proof of Reserves
Despite Youssef’s accusation and concerns, Paxful has not responded or provided an explanation regarding the removal of the proof of reserves. Paxful, established in 2015 by Youssef and Artur Schaback, asserts to have over 7 million users and offers support for over 300 payment methods.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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