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Epayments, one of many largest cost suppliers within the U.Okay., has halted operations after the Monetary Conduct Authority (FCA) suspended the corporate for “weaknesses” associated to its anti-money-laundering (AML) course of. Since Epayments shut down on February 11, prospects have been complaining as a result of they can’t entry their cash. Studies additionally element that if the agency turns into bancrupt, Epayments shoppers received’t be protected by any sort of FCA-regulated insurance coverage fund. Moreover, a non-executive director who resigned final week was as soon as the pinnacle of playing cards and funds at Locke Lord, a legislation agency that represented Onecoin’s ‘cryptoqueen’ Ruja Ignatova.
Additionally learn: New Regency Tv Wins Display screen Rights to Onecoin Story – The Lacking Cryptoqueen
UK Agency Epayments Suspends Providers – Over £100 Million in Shopper Funds Believed Inaccessible
Epayments was a extremely popular cost processor based mostly within the U.Okay. and estimates say the agency held £127.5 million of buyer funds. Nevertheless, the corporate suspended operations resulting from an FCA mandate that stated the agency had “a variety of weaknesses” tethered to its AML system. The suspension has neutered Epayments’ capability to facilitate funds and prospects can not use their pay as you go playing cards or withdraw and switch funds.
The FCA-regulated firm claimed it had over one million registered shoppers and dealt with greater than 1,000 enterprise accounts as properly. The Epayments web site shows a discover that explains why it suspended operations and notes that the FCA stated whereas they investigated Epayments AML system controls, they “recognized a weak point that required remediation.” The Epayments discover additionally states:
We all know this shall be a really irritating time for our prospects. We apologize for any inconvenience precipitated and are working tirelessly to make sure enhancements are made and accounts will be reactivated as quickly as doable.
To date buyer accounts haven’t been reactivated and the topic is trending all through social media, boards, and Telegram help channels. Clients are upset they can’t entry their cash and nobody actually is aware of how a lot is being held again by the FCA suspension. Monetary information outlet FT claims to have spoken with a slew of sad Epayments prospects who can not use their very own cash.
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All new and proofs about ePayments #epayments #DSX— ePayments suspended our (all) accounts (@Naomy12815457) February 21, 2020
An grownup entertainer from Brazil stated she had $400 locked in her Epayments account and a person from Turkey instructed the publication he has $54,000 caught contained in the Epayments platform. FT highlights that a variety of on-line grownup entertainers leveraged Epayments companies and their revenue has been affected by the outage. Different information shops, together with Behindmlm.com, have underlined the truth that the lion’s share of Epayments prospects labored in both the grownup trade or multi-level-marketing (MLM) affiliate schemes.
Is the Epayments Suspension Linked to the Onecoin Fallout?
Along with the suspension, a non-executive director from Epayments, Robert Courtneidge, abruptly resigned on February 17. Courtneidge wouldn’t touch upon why he left the corporate however stories present that he was formally employed by Locke Lord. The legislation agency is well-known for doing enterprise with Onecoin’s ‘cryptoqueen’ Ruja Ignatova and one other worker Mark Scott.
The previous Locke Lord lawyer Scott was indicted for cash laundering expenses and accused of laundering $400 million for Onecoin leaders. Scott, a Florida resident, is preventing the case however he faces as much as 50 years in jail for the alleged crime. Simply earlier than he began working with Epayments, Courtneidge labored for Locke Lord and was the International Head of Playing cards and Funds till 2018.
Studies element that at Locke Lord, Courtneidge was thought-about a “crypto skilled” and he hasn’t been charged with any crimes related to Onecoin. Nevertheless, FT and Inner City Press reveals that U.S. lawyer Christopher DiMase brought up Courtneidge’s identify fairly a bit throughout Scott’s trial. DiMase instructed the court docket that emails between Courtneidge, Scott, and Ruja Ignatova present that he “understood that Onecoin, successfully, was a fraud scheme.” One particular e mail shared by Inside Metropolis Press was despatched to Courtneidge and Scott’s e mail exhibiting the cryptoqueen asking them to retailer £220Okay in London for her. Ignatova additionally disappeared shortly after and she or he’s been lacking for properly over a yr. FT requested Courtneidge concerning the emails and his spokeswoman stated:
Mr. Scott was counting on a typically out there paper Mr. Courtneidge had written on cryptocurrency regulation around the globe that was out there on the Locke Lord Web site and never on any conversations had through e mail with Mr. Courtneidge.
FT said that Courtneidge’s spokeswoman wouldn’t touch upon his resignation or any subject material pertaining to Onecoin. Nobody is aware of when the Epayments service will begin working once more or if Courtneidge’s resignation has something to do with the AML weaknesses. Regardless of all of the hypothesis regarding the Onecoin drama, a large number of individuals can not entry funds held on the Epayments platform and over £100 million in shopper funds may be held hostage. The story highlights the truth that centralized cost suppliers are sketchy and will be extraordinarily dangerous. The story additionally shines a lightweight on why permissionless cash held in a noncustodial trend is the way forward for cash.
What do you concentrate on Epayments suspending companies and the current resignation of Robert Courtneidge? Do you assume the Epayments suspension and the Onecoin investigation are linked? Tell us what you concentrate on this thriller within the feedback part under.
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Picture credit: Shutterstock, Wiki Commons, Inner City Press, Honest Use, Twitter, Wiki Commons, and Pixabay.
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