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Thursday, April 6, 2023 –Over 9 million investors in the multi-million bitcoin company, Paxful, could soon lose their accounts.
For instance, hundreds of Kenyan investors on Paxful platform on Wednesday, March 5, were alerted to withdraw their investments following its(Paxful) sudden closure.
Chief Executive Officer, Ray Youssef, announced that the company was ceasing its operations owing to regulatory challenges and the departure of some key staff.
Youssef also explained that the regulatory framework in the parent company in US was a major hindrance to its global operations.
Nonetheless, anybody who had his funds still in their account was allowed to withdraw at their own convenience.
“Today, Paxful will be suspending its marketplace. We are not sure if it will come back. This will probably come as a big shock to many. While I cannot share the full story now, I can say that we unfortunately have had some key staff departures.
“While we work through these issues, we have taken the most secure option and ask you to elsewhere,” partly read the statement.
Interestingly, those willing to shift base to other platforms were given that option and support by Paxful administration.
According to data from Time Magazine, Paxful had nine million investors with a majority of the African investors coming from only Kenya and Nigeria.
Founded in 2015, the company was popular in Kenya and Africa and was, in 2022, named among the top 100 influential companies.
On the Paxful platform, millions of investors exchanged bitcoin for cash and mobile money.
