The Bitcoin exchange platform finds itself in turmoil as tensions between co-founders Ray Youssef and ArturSchaback escalate, resulting in the suspension of operations and leaving users in limbo.

Key Points

A popular buy Bitcoin instantly exchange platform has ceased operations due to internal conflicts between co-founders Ray Youssef and ArturSchaback.Youssef has advised users to withdraw their funds and consider exploring alternatives, such as Bitpapa, a similar platform not affiliated with the exchange.The suspension of the platform’s services could have significant ramifications in countries like Argentina, Kenya, and India, where it boasts a substantial user base.

Yesterday, tensions between the co-founders came to a head as the exchange abruptly announced the suspension of its operations. While Schaback expresses hope for a revival, Youssef appears to be steering users towards alternative services.

In a statement posted on the company’s website, Youssef, serving as the CEO, urged users to withdraw their funds from the platform, attributing the suspension to the departure of key personnel and regulatory challenges in the U.S. He expressed uncertainty regarding the platform’s future, hinting at potential jeopardy.

Youssef took to Twitter to shed further light on the situation, citing a legal petition filed against him and the exchange by Schaback as a significant hindrance to the company’s operations. He claimed that this legal battle, coupled with the exodus of essential team members, compelled him to make the difficult decision to suspend operations.

Conversely, Schaback expressed surprise at the abrupt shutdown, maintaining his intention to revive the platform. He dismissed the suspension as temporary and outlined plans to reestablish it with a new business approach.

Schaback alleged that the decision to suspend operations was part of a deliberate effort to relocate the company’s operations beyond U.S. jurisdiction. He accused Youssef of scapegoating him for the company’s challenges, an assertion later refuted by Youssef.

According to Schaback, the root of their dispute dates back to 2021, when a proposed deal between him and Youssef collapsed. The deal involved the potential acquisition of Schaback’s stake in the company, which Youssef ultimately opted against, opting instead to assume full control of the company.

Youssef’s recommendation for users to explore alternative trading platforms led to the promotion of Bitpapa, a platform with functionalities akin to the exchange. Notably, Youssef clarified that while he supports Bitpapa, he has no direct involvement in its operations. Schaback, however, highlighted similarities between Bitpapa and the exchange, including apparent overlap in user databases.

Numerous Twitter accounts reached out to users, suggesting they transition to Bitpapa using their credentials, implying seamless migration of user data.

Summing up the results

The conflict between the co-founders has cast a shadow over the future of the platform, leaving users uncertain about their funds and trading options. As Youssef and Schaback navigate their differences, the fate of the exchange hangs in the balance, with significant implications for its global user base.