Ray Youssef claims he gave up his "title as CEO to unfreeze these accounts."
Crypto marketplace Paxful CEO successfully unfreezes 88% of user accounts, with $4.4 million worth of funds still frozen on the platform.
After more than a week of suspended operations, Paxful CEO, Ray Youssef, announced that the majority of previously frozen accounts had been unfrozen.
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"With no help from engineers or compliance folks," Youssef managed to release almost 90% of accounts, with the rest being "in the hands of" US regulators.
Youssef revealed that only about 3% of total user funds remain frozen, claiming that the unfreezing effort became his "final act" as Paxful's CEO.
Youssef's decision to step down as CEO was driven by his determination to unfreeze the accounts, even if it meant potentially facing "contempt of court."
I gave up my title as CEO to unfreeze these accounts and am also in danger of being in contempt of court. That is what I did besides a lot of sleepless nights. Nothing more I can do but sleep well tonight. Integrity trumps risk.
The mention of "contempt of court" likely stems from the ongoing legal dispute between Youssef and Paxful co-founder Artur Schaback. Schaback alleges that the company misappropriated funds, evaded US sanctions, and was laundering money.
Shortly after Schaback shared his allegations with the court, Youssef commented on the allegations and called them "ridiculous."
Paxful suspended its operations on April 4th due to "key staff departures" and the "regulatory challenges" faced by the platform. Prior to the suspension, Youssef had already authorized refunds for users of the Earn program affected by the collapse of Celsius.
