The global bitcoin exchange will be looking into its own coffers to reconcile users who lost their money as a result of the Celsius crash.
Global peer-to-peer Bitcoin platform paxful announced that it will provide almost nine bitcoins worth ~$250,000.00 to its Paxful Earn users who were affected by the Celsius crash.
Funds will be transferred to Paxful wallets this week. Paxful Earn was launched in partnership with Celsius to offer Paxful users the opportunity to earn returns on their Bitcoin. However, users were unable to withdraw their funds from Celsius when it crashed, leaving Paxful paralyzed and unable to recover the funds. About 600,000 interest-bearing accounts, including Paxful Earn users, were affected when US Bankruptcy Judge Martin Glenn ruled that the assets in the Celsius Earn accounts belonged to the bankruptcy state of Celsius, not to the users.
Ray Youssef, founder and CEO of Paxful, said: “The courts failed these Celsius users. The US government is more than willing to bail out traditional banks, but Bitcoin users don’t seem to be their priority. That doesn’t feel right to me, and I have taken steps to ensure that Paxful Earn users receive their full Celsius funds.”
Since the Celsius crash, Paxful has been encouraging self-custody of Bitcoin and advocating for users to hold their own Bitcoin. Paxful also supports financial education and transparency, having recently donated funds to build the Bitcoin Technology Center in Ghana to spread financial education.
Youssef stated that customer trust is hard to earn and even harder to maintain, and that he would always put Paxful users first. According to him, the company’s main focus is the customer and it has launched several initiatives to support its customers. He cites the company’s involvement in charitable and social impact work, such as providing funds to build a school in Rwanda and donating money to help with pandemic relief efforts in India.
