Paxful CEO Preaches Bitcoin Self Stewardship, Advises Against Crypto Exchange

The case for self-custody is growing stronger as investors seek proof of their holdings on crypto exchanges. While some CEOs have decided to double down on ensuring the safety of funds on their platforms, Ray Youssef, CEO of crypto exchange Paxful, embraced the idea of ​​self-custody when he took responsibility for more than 11 million users.

The fall of FTX has opened the eyes of investors who have mostly trusted crypto exchanges to protect their assets. FTX CEO Sam Bankman-Fried, however, violated that trust by embezzling user funds through Alameda Research. Since then, numerous exchanges have had to publicly share wallet information as proof of reserves.

In a post on Twitter, Youssef distanced himself from “others in the industry,” reiterating that he never touched investors’ money, adding that:

“My only responsibility is to help and serve you. That’s why I’m sending messages to all of our people today [Paxful] users to move their Bitcoins to their own custody. You should not keep your savings on Paxful or any exchange and only keep what you trade here.”

Youssef will send weekly emails to users strictly advising against storing cryptocurrencies on all crypto exchanges, including Paxful. The entrepreneur went on to point out the problem with trusted custodians like SBF, stating that “you’re at the mercy of […] their morals.”

Thanks to Satoshi Nakamoto, Bitcoin (BTC) — as an asset — is protected from centralized control and manipulation. Youssef highlighted this unique opportunity that Bitcoin brings to the table — “the chance to finally be in control.”

While he strongly advised users to take full control of their assets, Youssef guaranteed the safety of their funds for investors who choose to store their Bitcoins on Paxful. Moreover, the entrepreneur plans to remove Ether (ETH) from Paxful as a tradable asset citing a lack of integrity compared to the Bitcoin ecosystem.

The plan to remove Ether from Paxful came after Jeremy Garcia, founder and CEO of Satoshi’s Journal, highlighted Ethereum’s poorly designed protocol.

Related: Binance’s Proof of Reserve Raises Flags: Report

SBF hit the headlines after revealing its plan to launch a new business to return money to FTX investors.

“I would give anything to be able to do that. And I will try if I can,” the infamous entrepreneur said when asked by the BBC during a recent interview if he would start a new business to bring FTX back to users.