Paxful to refund users’ Earn balances affected by Celsius collapse
Paxful CEO Ray Youssef said funds will be returned by the end of the week.
Peer-to-peer crypto exchange Paxful will refund user balances affected by last year’s collapse of Celsius, according to a statement on March 29.
Until recently, Paxful offered an interest-bearing product called Paxful Earn, which it offered in cooperation with the crypto lending company Celsius. However, Celsius collapsed in June 2022, depriving Paxful of the funds it stored with Celsius Earn. Paxful, in turn, prevented customers from withdrawing funds from its own Paxful Earn platform.
Now, Paxful founder and CEO Ray Youssef has stated that users who held funds in Paxful Earn will receive a refund for the balances in those accounts.
Youssef commented on the fact that court proceedings have determined that Celsius Earn balances belong to the bankruptcy estate. He stated that this decision “still doesn’t sit right with me today” and said that individuals depend upon their investments.
The CEO said that the company has “dug into [its] own pockets” to provide the refund.
Youssef did not provide a precise date by which users can expect a refund but said that users can expect funds to appear in their wallet by the end of the week.