Paxful, a peer-to-peer Bitcoin exchange with 1.5 million customers in Nigeria, has announced that it is ceasing operations.
In a blog post published on Tuesday, co-founder and CEO Ray Youssef made this disclosure.
According to Decrypt, Youssef said during a Twitter Space that a lawsuit filed by a Paxful co-founder who is suing Paxful and Youssef after being “kicked out of the company” over a year ago also had an impact on the decision to shut down the site.
He said, “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. Also, regulatory challenges for the industry continue to grow, especially in the peer-to-peer market and most heavily in the U.S. While we work through these issues, we have taken the most secure option and ask you to explore self-custody and trade elsewhere.”
“My co-founder sued the company and sued me. I have a lawsuit over my head right now,” he was quoted as saying on the Twitter Space.
Although without mentioning the plaintiff by name, Youssef is most likely alluding to co-founder Artur Schaback who, according to a court docket made available on CourtConnect, sued Youssef in Delaware Chancery Court in January.
Notwithstanding Nigeria’s ban on cryptocurrencies, the country rated eighth out of 154 in the 2020 Geography of Cryptocurrency Study by Chainalysis for adoption and usage.
A list of the top 50 cryptocurrency centres for 2022 was created by the crypto accounting services company Recap, and included the Nigerian cities of Lagos and Ibadan. Lagos, Nigeria, came in at number 14, and Ibadan, Nigeria, came in at number 24.
Peer-to-peer technology usage in Nigeria is ascribed to Paxful as having started the country’s crypto business in the country.
The CEO of Paxful stated that Nigeria, with 1.5 million customers and a total volume of over $1.5 billion, is the company’s largest market in an interview with Business Africa Insider in 2022 (since 2015).
In 2021, the Central Bank of Nigeria outlawed cryptocurrency exchanges and related transactions. According to CBN, cryptocurrencies are being used for a number of illicit acts, such as tax evasion, the acquisition of small arms and light weapons, financing of terrorism, and money laundering.
