Key Takeaways:
- The CEO of Paxful, Ray Youssef confirmed that customers of their Earn programme who were impacted by collapse of Celsius Network in 2022 would receive refunds.
- According to Youssef, users could access their money in Paxful’s wallet soon.
The CEO of Paxful, Ray Youssef, tweeted on March 29 that customers of their Earn programme who were impacted by the bankruptcy of Celsius Network in 2022 would receive a refund. Youssef assured that the money would be returned to all impacted Paxful users and promised that it would be accessible in the days to come in the wallet for those users.
To give Paxful users the opportunity to make the yield on their Bitcoin, Paxful make was introduced in collaboration with Celsius. However, when Celsius collapsed, customers were unable to withdraw their money, paralysing Paxful and preventing it from retrieving the money.
When U.S. insolvency Judge Martin Glenn decided that assets in Celsius Earn accounts belonged to Celsius’ insolvency estate, not to the users, it had an impact on about 600,000 interest-bearing accounts, including Paxful Earn users.
Youssef wrote, “I’ve personally taken measures and will be paying back all affected Paxful users,” emphasizing that money would become available in the platform’s wallet soon after.
The sum that Paxful is reimbursing customers has not yet been made public. In accordance with the conditions of use of the interest-bearing Earn program, Celsius owns the funds therein, not the program’s depositors, Judge Martin Glenn ruled on January 4 during a bankruptcy hearing.
It is crucial to keep in mind that the failure of Celsius hurt countless consumers and undermined confidence in the crypto sector. As users were unable to get the money held by Celsius, Paxful was powerless to do anything, like many other companies.
In a February statement that NovaWulf Digital Management will act as a sponsor for its restructuring plan, the bankrupt platform claimed that more than 85% of Celsius users would be able to recover almost 70% of their cryptocurrency assets.
Youssef also stated that these Celsius users were let down by the judges. Traditional banks are more than ready to be bailed out by the American government, but Bitcoin users do not appear to be a top priority. Paxful finds that unsatisfactory, so they are undertaking the effort to reimburse users.
Paxful has been promoting Bitcoin self-custody and urging users to retain their own Bitcoin ever since the Celsius collapse. Paxful promotes financial literacy and openness, and just gave money to Ghana’s Bitcoin Technology Center to expand economic awareness there.
Youssef declared that he would always prioritise Paxful’s users because he understood that gaining and maintaining customer confidence is difficult. He claims that the business has made its customers its top priority and has started a number of initiatives to support them.
Any specific deadline was not given for users to expect a reimbursement, but as per Paxful users should anticipate seeing money in their wallets by the end of the week.
