The fall of FTX has been a magnet for investors who have mostly entrusted the protection of their assets to crypto exchanges. However, FTX CEO Sam Bankman-Fried breached this trust by misappropriating users’ funds via Alameda Research. Since then, many exchanges have had to publicly share wallet information as proof of reserves.
In a tweet, Youssef distanced himself from “others in the industry,” stressing that he did not touch investors’ money, adding that:
“My sole responsibility is to help and serve you. This is why today I am sending messages to all [Paxful] users to transfer your bitcoins into self-custody. You should not keep your savings on Paxful, or any exchange, and only keep what you trade here.”
Yousef will send weekly emails to users strongly advising against storing cryptocurrency on all cryptocurrency exchanges, including Paxful. The entrepreneur also highlighted the problem with trusting custodians like the SBF, noting that “you’re at the mercy of […] their morals”.
Thanks to Satoshi Nakamoto, Bitcoin
As an asset, it is protected from central control and manipulation. Youssef referred to this unique opportunity that Bitcoin brings to the table — “an opportunity to finally dominate.”
While strongly advising users to take full control of their assets, Youssef assured the safety of their funds to investors who choose to store their bitcoins on Paxful. Moreover, the businessman plans to remove the ether
of Paxful as a tradable asset citing a lack of integrity compared to the Bitcoin ecosystem.
The plan to delist Ether from Paxful came after Jeremy Garcia, founder and CEO of Satoshi’s Journal, pointed out the poorly designed Ethereum protocol.
Related: Binance Evidence of Reserves Raises Red Flags: Report
SBF made headlines after revealing its plan to start a new business to pay off FTX investors.
“I would give anything to be able to do this,” the notorious entrepreneur said when recently asked by the BBC during an interview if he would start a new business paying FTX users.