Paxful CEO Preaches Bitcoin Self-Storage, Discourages Crypto Exchange

by · December 12, 2022

The case for self-custody grows stronger as investors demand proof of their holdings across crypto exchanges. While some CEOs chose to double down on ensuring funds’ security on their platforms, Ray Youssef, CEO of crypto exchange Paxful, embraced the idea of ​​self-custody as he took responsibility for over 11 million users.

The fall of FTX was an eye opener for investors who predominantly trusted crypto exchanges to protect their assets. However, FTX CEO Sam Bankman-Fried violated that trust by misappropriating users’ funds via Alameda Research. Ever since, many exchanges have had to share wallet information as proof of reserves publicly.

In a tweet, Youssef distanced himself from “others in the industry” and reiterated that he never touched investors’ money, adding that:

“My only responsibility is to help and serve you. That is why today I am sending messages to all of our people [Paxful] users to move your Bitcoin to self-storage. You should not keep your savings on Paxful or other exchanges, and only keep what you trade here.”

Youssef will send weekly emails to users strongly discouraging the storage of cryptocurrencies on all crypto exchanges, including Paxful. The founder further highlighted the problem of trusting custodians like SBF, saying that “you are at your mercy […] their morals.”

Thanks to Satoshi Nakamoto, Bitcoin (BTC) – as a resource – is shielded from centralized control and manipulation. Youssef pointed out this unique opportunity that Bitcoin brings to the table — “the chance to finally be in control.”

While strongly recommending users to take total control of their assets, Youssef assured the safety of their funds for investors who choose to store Bitcoin on Paxful. Also, the entrepreneur plans to remove Ether (ETH) from Paxful as a tradable asset citing its lack of integrity compared to the Bitcoin ecosystem.

The plan to remove Ether from Paxful came after Jeremy Garcia, founder and CEO of Satoshi’s Journal, pointed out Ethereum’s poorly designed protocol.

Related: Binance’s Proof of Reserves Raises Red Flags: Report

SBF made headlines after revealing his plan to start a new business to repay FTX investors.

“I would give anything to be able to do that. And I’ll try if I can,” the infamous entrepreneur said when the BBC recently asked him in an interview if he would start a new business to pay back FTX users.