On April 4, Paxful, a peer-to-peer marketplace for trading Bitcoin, Tether (USDT), and USDC, unexpectedly declared the immediate suspension of its platform.

CEO Ray Youssef stated in a letter, "We are not sure if it will come back."

Youssef was vague as to the reasons for the closure, writing that "While I cannot share the full story now, I can say that we unfortunately have had some key staff departures. Also, regulatory challenges for the industry continue to grow, especially in the peer-to-peer market and most heavily in the U.S."

Youssef further detailed the situation in a Twitter Space discussion, expressing concerns for user funds due to a lawsuit filed by his co-founder. He also accused the co-founder of causing the departure of all their senior-level staff members.