• Paxful has announced that it will be refunding all impacted users of its Paxful Earn program, which was in partnership with the bankrupt crypto lender Celsius.
• The CEO of Paxful has stated that he could not let users suffer and will ensure they are made whole.
• It is still being determined how much of a refund each user will receive.
Paxful Vows To Refund Impacted Users Of Crypto Lender Celsius
Celsius Bankruptcy Leaves Users in Limbo
Users have been left in limbo as crypto lender Celsius froze withdrawals due to bankruptcy proceedings. This meant users were unable to access their funds from the firm’s interest-bearing Earn Program.
Paxful To Refund All Impacted Users
Ray Youssef, the CEO of peer-to-peer Bitcoin Marketplace Paxful, has stated that the firm will be refunding all impacted users of its Paxful Earn program. He noted that he could not stand by and watch them suffer, so they’ve made them whole. It is still being determined how much each user will receive as part of the refund.
Court Ruling Not Acceptable To CEO
The court had ruled that Celsius Earn Accounts belonged to Celsius‘ bankruptcy estate, not to its users – a decision which did not sit right with Youssef. He believes everyone needs to hold themselves to a higher standard and ensure transparency for their customers above profit.
Putting Customers First
This announcement from Youssef follows his previous appeals on behalf of customers when it comes to ensuring their rights are respected and protected by firms like Paxful and Celsius alike. By putting customers first, he hopes this sets an example for other companies in the industry to follow suit on customer protection policies going forward.
With Paxful’s announcement giving hope back to users who were previously stuck in limbo due to the collapse of Celsius, it is now up to other firms within the industry to adopt similar customer protection policies going forward so as not put customer funds at risk again in future scenarios such as these.