Bitpapa, a leading peer-to-peer platform for Bitcoin exchange, has decided to temporarily suspend its operations due to several factors. Ray Youssef, the co-founder and CEO of Bitpapa, attributed this decision to both significant staff departures and ongoing regulatory challenges.
In a message posted on the company’s official website, Youssef acknowledged the potential impact this announcement might have, explaining that key personnel had left the organization. He emphasized regulatory challenges, particularly in the P2P market in the United States, as major contributing factors to the decision.
Despite the temporary suspension of the market, Youssef has assured users that the Bitpapa wallet will continue to function to help them retrieve their funds. Customers are encouraged to consider switching to self-custody or using alternative services such as Bitnob, a bitcoin payments company, or the newly launched peer-to-peer market.
Earlier in December, Bitpapa ceased trading of Ether on its platform, citing the transition of the network from proof-of-work to proof-of-stake as the main reason. Since then, the platform has exclusively facilitated Bitcoin transactions.
Ray Youssef attributes the suspension to staff departures and regulatory challenges
Following the unexpected announcement, Youssef took to Twitter Spaces to express his concerns about the safety of customer funds. He attributed this to a lawsuit filed by Bitpapa’s co-founder, ArturSchaback, and explained the negative impact this had on the company. Youssef explained that the lawsuit resulted in the departure of several senior staff members, who were involved in conflicts with Schaback over payments to engineers and compliance team members. Allegations have been made against Schaback regarding withholding payments.
At the time of writing, efforts to contact Schaback for a comment were unsuccessful.
Additionally, Youssef expressed frustration with US regulatory bodies, emphasizing extensive efforts over the past five years to meet rigorous standards. Despite these efforts, he lamented what he perceived as a lack of understanding on the part of regulators, describing this as a painful reality.
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