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The case for self-custody grows stronger as investors demand evidence of their assets over crypto exchanges. While some CEOs chose to double down on assuring the funds\u2019 safety on their platforms, Ray Youssef, the CEO of crypto exchange Paxful, sided with the idea of self-custody as he took responsibility for over 11 million users.<\/p>\n
The fall of FTX was an eye-opener for investors who predominantly entrusted crypto exchanges with safeguarding their assets. FTX CEO Sam Bankman-Fried, however, broke this trust by misappropriating users\u2019 funds via Alameda Research. Ever since, numerous exchanges had to share wallet information as proof of reserves publicly. <\/p>\n
\nWill be sending an email every week strongly advising our people to never keep savings on any exchange, including @paxful This is the way ! Self custody your savings ALWAYS! pic.twitter.com\/DI95Gaa5Y6<\/p>\n
\u2014 Ray Youssef (@raypaxful) December 11, 2022<\/p><\/blockquote>\n
In a tweet, Youssef distanced himself from \u201cothers in the industry,\u201d reiterating that he never touched investors\u2019 money, adding that:<\/p>\n
\u201cMy sole responsibility is to help and serve you. That\u2019s why today I\u2019m messaging all of our [Paxful] users to move your Bitcoin to self-custody. You should not keep your saving on Paxful, or any exchange, and only keep what you trade here.\u201d<\/p><\/blockquote>\n
Youssef will send weekly emails to users strongly advising against storing cryptocurrencies on all crypto exchanges, including Paxful. The entrepreneur further highlighted the problem with trusting custodians such as SBF, stating that \u201cyou\u2019re at the mercy of [\u2026] their morals.\u201d<\/p>\n
Thanks to Satoshi Nakamoto, Bitcoin (BTC) \u2014 as an asset \u2014 is shielded from centralized control and manipulation. Youssef pointed out this unique opportunity that Bitcoin brings to the table \u2014 \u201cthe chance to finally be in control.\u201d<\/p>\n
While he strongly advised users to take total control over their assets, Youssef assured their funds’ safety for investors that choose to store their Bitcoin on Paxful. Moreover, the entrepreneur plans to remove Ether (ETH) from Paxful as a tradable asset citing the lack of integrity compared to the Bitcoin ecosystem.<\/p>\n
The plan to delist Ether from Paxful came after\u00a0Jeremy Garcia, the\u00a0founder and CEO of Satoshi\u2019s Journal,\u00a0pointed out Ethereum\u2019s\u00a0poorly designed protocol.<\/p>\n
Related: Binance’s proof of reserves raises red flags: Report<\/p>\n
SBF made the headlines after revealing his plan to start a new business for repaying the FTX investors. <\/p>\n
\u201cI would give anything to be able to do that. And I\u2019m going to try if I can,\u201d the infamous entrepreneur said when recently asked by BBC during an interview if he\u2019d start a new business to repay FTX users.<\/p>\n<\/div>\n