Litecoin Payments Start-up That Won Trader Support Suddenly Close Down

Suzette Paulsen

March 27, 2018 2:19 pm

Litecoin Payments Start-up That Won Trader Support Suddenly Close Down | Coindelite News
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LitePay: A Litecoin Payments Start-up has shut down unexpectedly 

Litecoin merchant processor LitePay has unexpectedly ended its operations, the Litecoin Foundation published in a post on its website on Monday.

LitePay – which likewise guaranteed it would offer a crypto wallet and “LitePay debit card” through which clients could convert Litecoin into U.S. dollar – was revealed in December of 2017 and set to launch in February this year. Information from OpenGovUS shows that LitePay Inc. started working on 1st February.

The proposed business venture had won acclamation from the foundation earlier, which took to Twitter in December to write: “Finally, someone is taking the opportunity to create Good job!”

However, as of 26th February, LitePay has just begun to roll out its shipping service, as indicated by a post on Twitter. The last public messages from the organization linked to a mid-March Ask Me Anything session on Reddit, and an email account listed on LitePay’s website didn’t answer to a request for comment by press time.

The foundation, which supervises the development of the digital currencies, stated in its post that it contacted the business founder and CEO, Kenneth Asare, following the AMA on 16th March expressing concerns regarding the “less than transparent nature” LitePay. It was then that Asare uncovered that he had chosen to stop operations and intend to sell the company.

The Foundation’s post further clarifies:

“It was at this time that Kenneth asked the foundation for more funds to continue operations. The foundation refused any further funding as he was unable to provide a satisfactory picture of where the money had been spent and refused to go into exact details about the company and show objective evidence to back up his statements.”

Both the Foundation and Litecoin founder Charlie Lee showed concerns for their support of the project.

Charlie Lee wrote on Twitter:

“Like everyone else, we got too excited about something that was too good to be true, and we optimistically overlooked many of the warning signs. I am sorry for having hyped up this company and vow to do better due diligence in the future.”

The Litecoin Foundation made the same statement in its post:

“We are greatly disheartened that this saga has ended in this way and we apologize for not doing enough due diligence that could have uncovered some of these issues earlier. We are currently working hard to tighten our due diligence practices and ensure that this does not happen again.”

Although, the foundation struck a hopeful tone.

“Litecoin was doing perfectly fine before the promise of LitePay and will continue to do so.”