Paxful Refunds Celsius Earn Deposits to Affected Users

• Celsius and Celsius Custody account holders are promised a refund of up to 72.5%,
• Earn users were not promised a refund as the judge agreed that Celsius’s ToS proved that the customers had signed over their crypto,
• Ray Youssef – Paxful’s CEO – announced he would be refunding Earn users in the Paxful community.

Paxful to Refund Affected Earn Users

A settlement was recently reached between Celsius and Celsius Custody account holders, promising them a refund of up to 72.5%. However, Earn users were not offered any compensation or refunds, as the judge agreed that they had already signed away their crypto in accordance with Celsius’s terms of service (ToS).

Ray Youssef Steps In

Luckily for some affected Earn users, Ray Youssef – Paxful’s CEO – announced he would be offering refunds out of his own pocket. The cross-section between those miffed by the lack of refunds and Paxful users is relatively small, but this gesture will still help make whole some of those who have lost hope of seeing their funds again.

Limited Refunds

The refund from Ray Youssef was only available for certain Earn users who were also part of the Paxful community. As such, there are more people who may still feel aggrieved by the situation despite this gesture. Furthermore, this does not change anything about the original agreement made between Celsius and their custody account holders.

Compensation Through Equity

As compensation for their losses, non-custody account holders were only offered equity in a new company founded by the deal’s sponsor. This is hardly adequate recompense for those who may have lost thousands or tens of thousands on these investments due to being locked out from accessing them after signing away their rights according to ToS.

Conclusion

Whilst it remains unclear why these sorts of clauses exist in terms and conditions agreements, what is clear is that many people feel cheated by situations like this one where no real recompense has been provided for losses caused by mismanagement or negligence on behalf of companies handling user funds. Whilst it is commendable that Ray Youssef stepped in with his own money to provide relief for some users affected by this scenario, it remains unsatisfactory that so many more are still left without recourse or reparation for their losses