Paxful, the peer-to-peer cryptocurrency trading platform, has it announce The new Chief Executive Officer (CEO) in a press release on May 30. The CEO is taking over from the platform curator, Srinivas Raju.
Paxful has a new CEO
Former CEO of Trust Token, Roshan Daria, has been appointed to run the day-to-day operations of the cryptocurrency platform. His role includes improving operations and considering strategic options.
Archblock, formerly Trust Token, is a decentralized finance (DeFi) institutional lending protocol that has distributed more than $1.5 billion in stablecoins to cryptocurrency businesses.
In a statement, Daria said Paxful pioneered real-world use cases for bitcoin and, in the process, has helped millions of people.
Over the past eight years, Paxful has been a leader in creating real use cases for Bitcoin and helping millions of people. I look forward to getting started and building on the innovative technology the team has developed.
Paxful has faced internal conflicts in the past that have disrupted its operations.
headwinds that forced the closure
A lawsuit was filed in December 2022 by Artur Schapak, co-founder of Paxful, against Ray Youssef, CEO and co-founder. Šabac claimed he was fired unfairly and asked for compensation.
The departure of key members of the P2P team, which included the chief financial officers and compliance officers, caused a significant disruption to operations.
In December, Paxful delisted Ethereum as the smart contract platform shifted from Proof of Work to a Proof of Stake consensus system.
However, the conflicts within Paxful were exacerbated by financial difficulties and strict regulations, especially from the United States.
In January, the CFTC asked Paxful for information about their business. The CFTC is investigating whether a P2P ramp is operating as a futures commission trader (FCM) without the proper license.
As part of compliance under the FCM, an agency that facilitates deals must register and comply with laws intended to protect investors. Paxfull said, in response to this subpoena, that it does not operate as a securities business and does not hold users’ funds.
The exchange shut down briefly in early April 2023, saying it could not operate in a sustainable way for business.
However, less than six weeks later, on May 16, Paxfull said it would reopen under new management. The exchange also revealed that it has beefed up its security measures, adding a new fraud detection system.
At the same time, Paxful said it is adding new features and partnering with more companies, including Ledger, a hardware maker, and Simplex, a payment processor that allows cryptocurrency trading using fiat currencies such as the US dollar.
Amidst the announcement, former CEO Youssef said, Criticize in Dharia, saying that he is a “CEO of DeFi” and users should expect tokens. He also distanced himself from the new administration.
Featured image from Canva, chart from TradingView
