One of the biggest Bitcoin exchange platforms in Nigeria, Peer-too-peer Bitcoin platform, Paxful, with about 1.5m users in Nigeria has closed down operations.
The news update about the shut down of the Bitcoin platform was shared by the co-founder and Chief Executive Officer, Ray Youssef. While speaking on the issue on a Twitter space, Youssef said that the platform has to close down because a lawsuit was brought by a Paxful co-founder who is suing Paxful and Youssef after being “kicked out of the company” over a year ago.
“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 Twitter Space.
In an interview with Business Africa Insider in 2022, Paxful’s CEO said that Nigeria is the firm’s largest market, with 1.5 million users and over $1.5 billion volume to date (since 2015).