2 Paxful Co-Founders Go To Court To Fight For Control Of The Company

Key Points:

• The two co-founders of the Paxful Bitcoin P2P marketplace, Artur Schaback and Mohamad (Ray) Youssef have had a bitter dispute in a Delaware court.
• This could be the real reason behind the sudden closing of the Bitcoin market on April 4.
• Schaback said in an interview that Youssef unilaterally shut down Paxful on April 4 and tried to kick him out of the company.

The largest P2P exchange, Paxful, suddenly shut down due to a fight for control of the company by the two co-founders when they were accusing each other in a recent court case, according to Cointelegraph.

The two co-founders of the Paxful Bitcoin P2P marketplace, Artur Schaback and Mohamad (Ray) Youssef have had a bitter dispute in the courts of Delaware, USA.

This may have caused this marketplace to close on April 4 real reason suddenly. Schaback and Youssef, who co-founded Paxful in 2015, are now suing for control of the company, bringing multiple charges against each other, according to court documents.

Schaback, who served as Paxful’s CEO until February 2022, was banned from running the company due to disagreements with Paxful CEO Youssef about the future and functioning of the market, including “newspapers” ongoing reporting to unknown entities.

According to Schaback in the lawsuit, a large amount of company’s bitcoin was transferred to an entity other than a legitimate software company in Turkey called “EMiR”.

“It does not have a website publicizing software or web development services and its physical address […] appears to belong to a clothing company.”

Schaback said.

A former Paxful executive-owned company called Dekslektika, located in St. Petersburg, Russia, is a purported subcontractor who allegedly received money from EMiR. According to court documents, these organizations were allegedly responsible for “significant non-conventional transactions” that started as soon as Schaback’s access to the company’s activities was restricted.

Youssef said the allegations revolved around paying a Turkish engineering company working for this company, which Schaback refused to pay, causing the entire team of 80 engineers to stop working. With his team on the verge of resigning, Youssef said it was impossible to keep Schaback at Paxful.

Schaback said in an interview that Youssef unilaterally shut down Paxful on April 4. He argues that Youssef’s actions are intended to consolidate power in jurisdictions outside of the United States and remove me and the others shareholder from his plan. Schaback said he has limited company information access and has not participated in day-to-day activities for 18 months.

As mentioned earlier, Paxful, one of the world’s largest peer-to-peer (P2P) cryptocurrency exchanges by volume, has announced that its marketplace has been suspended, and a date has not been determined open again.

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