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Paxful co-founders’ litigation cites misappropriation of funds, money laundering, U.S. sanctions evasion

Published 04/06/2023, 05:15 PM
Updated 04/06/2023, 07:00 PM
BTC/USD
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A bitter dispute between Paxful’s co-founders, Artur Schaback and Mohamad (Ray) Youssef, in Delaware's courts may have been the real reason behind the Bitcoin marketplace’s sudden closure on April 4.

Schaback and Youssef, who started Paxful in 2015 with a shared passion for Bitcoin (BTC), are now litigating the company’s control, with several accusations against each other, according to court documents. The allegations include misappropriation of company funds, money laundering and evasion of United States sanctions against Russia, among others.

Founders disagree

Court documents filed in Delaware on March 21, 2023. Source: U.S. Court of Chancery of Delaware.
Court documents filed on March 3, 2023. Source: U.S. Court of Chancery of Delaware.

Youssef’s point of view

Schaback’s point of view

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