LitePay Abruptly Shuts Down, Litecoin Founder Charlie Lee Apologize

LitePay, a startup that was going to bring BitPay-like functionality to Litecoin, has abruptly terminated its operations.

Litecoin Foundation, a non-profit dedicated to the advancement of Litecoin, announced on its website that LitePay CEO Kenneth Asare informed them that LitePay had ceased operations and was being sold.

The price of Litecoin had surged in mid-February on news that LitePay – which also claimed it would offer a crypto wallet and LitePay debit card through which users could convert Litecoin into US dollars – would launch later in the month.

Litecoin Foundation said prior to being told that LitePay was ceasing operations, the foundation had approached Asare regarding his less than transparent nature with the company and to express their, and the community’s, concerns regarding his recent Reddit AMA, in which Asare gave few specifics about the project and was accused of evading questions.

The foundation explained that “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.”

The foundation apologized for not doing enough due diligence that could have uncovered some of these issues earlier. It added that they are currently working hard to tighten their due diligence practices and ensure that this does not happen again.

“Litecoin was doing perfectly fine before the promise of LitePay and will continue to do so,” the foundation said. “The ecosystem is far bigger than one company and is continually growing with support from many others with market ready products joining the space and fulfilling their promises to make it easier for the world to use Litecoin.”

Litecoin founder Charlie Lee expressed regret for supporting the project. In a Twitter post, he apologized for adding to the hype around LitePay when it was first announced in February.

“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,” Lee said. “I am sorry for having hyped up this company and vow to do better due diligence in the future.”

As soon as the news broke out, Litecoin lost nearly ten percent of its value. The cryptocurrency is trading today at $140.42, according to the data on CoinMarketCap.

Source: Read Full Article

Leave a Reply