Blog
/
Crypto lending
Expert verified
5 min read

Paxful to refund Earn account holders affected by Celsius’ bankruptcy

Ayush Pande
Written by:
Ayush Pande
Reviewed by:
Ayush Pande
Paxful to refund Earn account holders affected by Celsius’ bankruptcy
Our Editorial Standards:

Cryptocurrencies can be volatile and high risk. Though our articles are for informational purposes only, they are written in accordance with the latest guidelines from tax agencies around the world and reviewed by certified tax professionals before publication. Learn more about our Risk Warning and Our Editorial Process.

In the words of Ray Youssef, “Paxful, like many others, were paralyzed to act as we could not retrieve funds held by Celsius…. This didn’t sit right with me then, and it still doesn’t sit right with me today. I’ve personally taken action and will be refunding all affected Paxful users”

Peer-to-peer trading platform Paxful announced its plans to return the assets of Earn account holders whose funds were frozen following Celsius’ bankruptcy.

In 2021, Paxful launched its yield-bearing product, Paxful Earn, in partnership with Celsius Network. However, Celsius filed for chapter 11 bankruptcy protection in 2022, causing Paxful’s Earn users to lose access to the funds locked on Celsius’ platform.

Although Celsius has initiated refunds, the bankrupt lender only allowed a fraction of its clients to withdraw their assets. Moreover, Judge Martin Glenn recently ruled that Celsius’ Earn accounts belong to the company, and not its clients. 

Referring to these developments, Paxful CEO Ray Youssef tweeted that the firm will return $250K to the affected users. According to the email sent to holders of Paxful Earn accounts, the firm will send user deposits locked on Celsius to their Paxful Wallets later this week. 



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


Youssef said this venture cost him 8.8 Bitcoin (BTC) tokens. The CEO of Paxful also advised users to keep their funds in self-custodial wallets, adding,

“I hope that everyone takes their funds and self custodies. Do not keep any funds on Paxful unless you will trade them right away.”

Written by
Author's profile picture

Ayush Pande

Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.

Connect with Ayush on LinkedIn

How we reviewed this article

All Bitcompare articles go through a rigorous review process before publication. Learn more about our Risk Warning and the Bitcompare Editorial Process.

Paxful to refund Earn account holders affected by Celsius’ bankruptcy

Paxful disclosed its plans to return the assets of Earn account holders whose funds were frozen following Celsius’ bankruptcy.
Dot
April 6, 2025
Ayush Pande

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

TABLE OF CONTENTS
Ray Youssef; Photo Source: Bitcoin Events (Youtube)
In the words of Ray Youssef, “Paxful, like many others, were paralyzed to act as we could not retrieve funds held by Celsius…. This didn’t sit right with me then, and it still doesn’t sit right with me today. I’ve personally taken action and will be refunding all affected Paxful users”

Peer-to-peer trading platform Paxful announced its plans to return the assets of Earn account holders whose funds were frozen following Celsius’ bankruptcy.

In 2021, Paxful launched its yield-bearing product, Paxful Earn, in partnership with Celsius Network. However, Celsius filed for chapter 11 bankruptcy protection in 2022, causing Paxful’s Earn users to lose access to the funds locked on Celsius’ platform.

Although Celsius has initiated refunds, the bankrupt lender only allowed a fraction of its clients to withdraw their assets. Moreover, Judge Martin Glenn recently ruled that Celsius’ Earn accounts belong to the company, and not its clients. 

Referring to these developments, Paxful CEO Ray Youssef tweeted that the firm will return $250K to the affected users. According to the email sent to holders of Paxful Earn accounts, the firm will send user deposits locked on Celsius to their Paxful Wallets later this week. 



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


Youssef said this venture cost him 8.8 Bitcoin (BTC) tokens. The CEO of Paxful also advised users to keep their funds in self-custodial wallets, adding,

“I hope that everyone takes their funds and self custodies. Do not keep any funds on Paxful unless you will trade them right away.”

Written by
Author's profile picture

Ayush Pande

Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.

Connect with Ayush on LinkedIn

Paxful to refund Earn account holders affected by Celsius’ bankruptcy

HomeCrypto lending
Contents
Ray Youssef; Photo Source: Bitcoin Events (Youtube)
In the words of Ray Youssef, “Paxful, like many others, were paralyzed to act as we could not retrieve funds held by Celsius…. This didn’t sit right with me then, and it still doesn’t sit right with me today. I’ve personally taken action and will be refunding all affected Paxful users”

Peer-to-peer trading platform Paxful announced its plans to return the assets of Earn account holders whose funds were frozen following Celsius’ bankruptcy.

In 2021, Paxful launched its yield-bearing product, Paxful Earn, in partnership with Celsius Network. However, Celsius filed for chapter 11 bankruptcy protection in 2022, causing Paxful’s Earn users to lose access to the funds locked on Celsius’ platform.

Although Celsius has initiated refunds, the bankrupt lender only allowed a fraction of its clients to withdraw their assets. Moreover, Judge Martin Glenn recently ruled that Celsius’ Earn accounts belong to the company, and not its clients. 

Referring to these developments, Paxful CEO Ray Youssef tweeted that the firm will return $250K to the affected users. According to the email sent to holders of Paxful Earn accounts, the firm will send user deposits locked on Celsius to their Paxful Wallets later this week. 



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


Youssef said this venture cost him 8.8 Bitcoin (BTC) tokens. The CEO of Paxful also advised users to keep their funds in self-custodial wallets, adding,

“I hope that everyone takes their funds and self custodies. Do not keep any funds on Paxful unless you will trade them right away.”

Written by
Author's profile picture

Ayush Pande

Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.

Connect with Ayush on LinkedIn
Ayush Pande

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

In the words of Ray Youssef, “Paxful, like many others, were paralyzed to act as we could not retrieve funds held by Celsius…. This didn’t sit right with me then, and it still doesn’t sit right with me today. I’ve personally taken action and will be refunding all affected Paxful users”

Peer-to-peer trading platform Paxful announced its plans to return the assets of Earn account holders whose funds were frozen following Celsius’ bankruptcy.

In 2021, Paxful launched its yield-bearing product, Paxful Earn, in partnership with Celsius Network. However, Celsius filed for chapter 11 bankruptcy protection in 2022, causing Paxful’s Earn users to lose access to the funds locked on Celsius’ platform.

Although Celsius has initiated refunds, the bankrupt lender only allowed a fraction of its clients to withdraw their assets. Moreover, Judge Martin Glenn recently ruled that Celsius’ Earn accounts belong to the company, and not its clients. 

Referring to these developments, Paxful CEO Ray Youssef tweeted that the firm will return $250K to the affected users. According to the email sent to holders of Paxful Earn accounts, the firm will send user deposits locked on Celsius to their Paxful Wallets later this week. 



Get Our Free Newsletter

Subscribe to our newsletter to get tips, our favorite services, and the best deals on Bitcompare-approved picks sent to your inbox


Youssef said this venture cost him 8.8 Bitcoin (BTC) tokens. The CEO of Paxful also advised users to keep their funds in self-custodial wallets, adding,

“I hope that everyone takes their funds and self custodies. Do not keep any funds on Paxful unless you will trade them right away.”

Written by
Author's profile picture

Ayush Pande

Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.

Connect with Ayush on LinkedIn
Written by
Ayush Pande