Paxful CEO Ray Youssef Promises To Use Personal Stocks To Protect Users’ Rights
Ray Youssef, who previously stepped down as CEO of Paxful, said to the public’s trust he would retain my voting rights on the board of directors and will continue to delegate responsibility for protecting the interests of the people and the best interests of the user.
I just put 99.9% of my shares in Paxful, the company I built from ideation, into a PUBLIC TRUST that makes EVERY FROZEN ACCOUNT WHOLE. @builtwithbtc will build schools in the global south w what remains. My former partner won’t release your funds so I’m covering them myself. https://t.co/nUfWhCBvdz
— Ray Youssef (@raypaxful) April 22, 2023
When Youssef and his co-founders reached an impasse on the company’s direction, the parties agreed that Srinivas Raju of the law firm Richards, Layton & Finger (designated by court order) would act as the Paxful supervisor throughout the process, was reported. As a supervisor, Srinivas has full power and control over the company, its operations, and management. They will work to stabilize the company while preparing to make recommendations to the court on how to conduct business.
According to Youssef, he set up to commit 99.9% of his shares to the Public Trust and says that the money generated by his stake will be used to help every Paxful user become well-rounded.
“I will put 99.9% of my personal shares in Paxful, which accounts for over 45% of the company, into a public trust. The funds generated by my shares will be used to make every Paxful user whole. Anything remaining will go directly towards the Built With Bitcoin Foundation to build schools.”
Ray Youssef’s goal is to keep the Paxful Wallet active for at least two years so that Paxful can withdraw all frozen funds from the platform and give users time to get them back.
Over the weekend, Ray Youssef was able to free 88% of users’ frozen funds. Only about 3.3% of total customer funds remain on Paxful Wallet, totaling just under $4.5 million.
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