Bitcoin platform with over one million Nigerian users shuts down

 Paxful, a peer-to-peer Bitcoin exchange with 1.5 million users in Nigeria, has declared that it is ceasing operations.

In a blog entry published on Tuesday, co-founder and CEO Ray Youssef made this disclosure.

"Paxful will be suspending its marketplace today," he declared. We are uncertain as to whether it will return.

"Many people will likely be shocked by this. While I am unable to go into detail at this time, I can say that we have, regrettably, experienced some important staff departures. Additionally, regulation issues for the sector continue to worsen, particularly in the peer-to-peer market and particularly in the US. We have chosen the safest course of action and ask that you investigate self-custody and trading while we resolve these problems.

According to Decrypt, Youssef claimed during a Twitter Space that a lawsuit filed by a Paxful co-founder who is suing Paxful and Youssef after being "kicked out of the company" over a year ago also had an impact on the decision to shut down the platform.

"Both the business and I were sued by my co-founder. I currently have a lawsuit hanging over my head," he was quoted as stating on Twitter.

Despite not mentioning the complainant by name, Youssef is most likely alluding to co-founder Artur Schaback who, according to a court docket made available on CourtConnect, sued Youssef in Delaware Chancery Court in January.

Despite Nigeria's prohibition on cryptocurrencies, the country placed eighth out of 154 in the 2020 Geography of Cryptocurrency Report by Chainalysis for adoption and usage.

A list of the top 50 cryptocurrency centers for 2022 was created by the crypto accounting services company Recap, and included the Nigerian cities of Lagos and Ibadan. Lagos, Nigeria, came in at number 14, and Ibadan, Nigeria, came in at number 24.

Peer-to-peer technology usage in Nigeria is attributed to Paxful as having started the country's crypto industry there.

The CEO of Paxful stated that Nigeria, with 1.5 million users and a total volume of over $1.5 billion, is the company's biggest market in an interview with Business Africa Insider in 2022. (since 2015).

In 2021, the Central Bank of Nigeria outlawed cryptocurrency exchanges and associated transactions. According to CBN, cryptocurrencies are being used for a number of illegal activities, such as tax evasion, the acquisition of small arms and light weapons, funding of terrorism, and money laundering.

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