Bitcoin Payment Processor EgoPay Has Ceased Trading, Millions in Funds Stolen?
EgoPay, a Bitcoin payment processor, has ceased all trading, with unconfirmed reports that founders of the company have stolen millions from customers. Merchants began to report problems in Late December when they started to have problems with the company's API, which was returning faulty transaction notifications. When early January hit, users reported funds were frozen in their accounts with a typical response from EgoPay:
Related News
Payment solutions company Payeer has shown CoinDesk evidence that it has $185,503.32 and €5,460.75 in a frozen wallet with EgoPay. Electronic payment processor and gateway EgoPay has frozen accounts belonging to a number of its clients, including cryptocurrency exchanges such as BTC-e and Bitmarket.pl. BTC-e told CoinDesk that EgoPay is denying it access to $80,000 of its funds having placed this sum in a "frozen wallet". Slovakian cryptocurrency exchange GOLDUX.com confirmed $7,183 of its funds are also being withheld by EgoPay, which is based in Lithuania and registered in Malta. The....
It appears the fluctuating bitcoin price is really taking its toll on related businesses. Recently CEX.io went so far as to halt its cloud mining operations. CoinTerra has ceased granting payments to customers due to growing debts, and now electronic payment processor EgoPay is joining the ranks as the latest bitcoin-delving company to bring its operations to a temporary halt. Clients logged into the EgoPay site are allegedly receiving the following message: "EgoPay Members will be experiencing higher than normal review times for all withdrawals and deposits as EgoPay is currently....
EgoPay's former CEO Tadas Kasputis has told CoinDesk that the company's bitcoin-related customers lost $1.1m in the hack. Third-party payment processor EgoPay suffered a hack in late December, the company has confirmed in a blog post. The post claims the person or persons involved interfered with a number of transactions. Explaining more about the hack, EgoPay writes: "False values were made available in the merchants platform, when no actual value was transmitted in EgoPay. This hacker then proceeded to convert this fake value into irreversible currencies all within a one-hour window.....
Apparently EgoPay has had a nasty blow to its... ego. After freezing funds and bringing its operations to a temporary halt last week, the company has confirmed that it has been the victim of a massive hack, and ultimately, an insider is suspected. Back in December, Lithuania-based exchange GOLDUX.com made the claim that the company had indeed been the victim of a hacking, but EgoPay refused to support such a claim... Until now... The company verified the hack in a recent blog post, and later went on to discuss the event further by saying: "False values were made available in the merchants....
BitYes, the international USD-based exchange operated by Huobi, has relaunched with a new design, stop orders and a fee-free promotion that should appeal to higher-volume customers depositing via payment processor EgoPay. Until 31st December, BitYes is offering zero fees for deposits, withdrawals and trading for customers outside the US using EgoPay, claiming it is "the cheapest way in the world for anyone to acquire a large amount of bitcoin for USD". Customers would still need to pay a roughly $30 fee to wire money to an EgoPay account internationally and a $12 EgoPay deposit fee, but....