Moopay Goes From Robusto To Busto

Moopay, which owns and runs, are insolvent and will enter into liquidation after it was revealed that a bug allowed attackers to withdraw double the amount they had deposited. At this time, there is no record of any Moopay details in the bankruptcy and insolvency register used in the UK although it's reasonable to expect that the details have yet to be entered.

The latest Moopay blog reads:

My History

I will not be commenting on the majority of the allegations surrounding me, other than to say that some of the latest ones are getting rather ridiculous, and I deny the vast majority of them.

My name was legally changed from Ryan Kennedy to Alex Green, in an attempt to start my life over and have some peace.

Moopay LTD

It recently came to my attention that had been bleeding funds from the core platform. The audit process did not trigger on this, because the audit process looks for a difference between the sum balance of consumer accounts, and what is reported on the platform. Because of what is a giant technical oversight by myself, it did not take in to account any additional funds held on the platform, including funds managed on behalf of MintPal Limited, and funds held for third parties.

The bug itself seems to have manifested as people being able to arbitrarily double their balances on a whim. This was reported when Moolah V2 was launched (both privately and in public), and was rapidly resolved – but it appears now that there was another vector to do this that we were unaware of. I am currently digging through the withdrawal history, and building a full picture of events to provide to the relevant authorities as required.

This was rapidly investigated while I was overseas, and all systems relating to it were shut down immediately as soon as it was noticed that large amounts of capital were missing. I tentatively stated that we were going bankrupt, but there was hope in the form of a VC investment that could cover the losses. The firm in question pulled out after the PR backlash that suddenly exploded, which leads me to wonder if this whole mess could have been avoided had I remained quiet to the general public for a few days. I do not believe that would have been the right thing to do however.

Because of what has occurred, Moopay LTD is now insolvent and has no choice but to enter in to liquidation following the passing of a winding-up resolution. In the United Kingdom, this is known as a creditors’ voluntary liquidation and is what happens when a company becomes insolvent and is unable to pay its debts. A creditors’ meeting will be announced shortly in relation to this.

Beyond this, the company was additionally running out of reserves to operate on based on our records, and we’ll be making full details of our expenses available to our investors in the very near future. This will include a full breakdown, and receipts/invoices where available. Had this situation not occurred, Moolah would still likely be going out of business this month.

Further details on the exploit and how it occurred, will be provided as soon as everything has been fully explored and all records investigated.

MintPal Withdrawals

Balances that were not stored with Moolah have not been subject to the same exploit.

As of so far, MintPal has processed 2597 BTC worth of altcoin withdrawals since the platform was fully shut down. A large number of withdrawals (both BTC and altcoin) were processed prior to this event.

XMR withdrawals will follow shortly.

Some funds are floating around in the old wallets (having failed to be imported), and I am currently trying to reclaim these in order to strength exchange reserves.

Withdrawals will continue to be processed until all wallets are depleted.

Final Words

I do not believe I can ever apologize enough to customers of MintPal, investors in Moolah, third parties who trusted us, and the general digital currency community at large. This situation should have never occurred, and I intend to never again take a position of leadership in a financial related company of any kind. Then again, I never expect to work in anything financial related full stop. I have zero intent of ever going in to business for myself, ever again.

I do not expect that the general populace will believe anything I have said here, and as the sole director of Moopay LTD, I fully intend to cooperate with any and all law enforcement and regulatory agencies as required. Contrary to rumours, none have reached out to me as of yet, but I await any contact in light of recent events. I am not in hiding, and it would be very easy for any official body to find me.

I fully expect that the Insolvency Service will find that I poorly managed the situation, and likely have me barred from being a company director for 15 years. I will cooperate with them fully in this situation.

There has been no criminal wrongdoing on the part of any employee or shareholder in Moopay LTD, and while I can understand the general sentiment against myself, please don’t attack my former employees. They were as surprised by this all as I was, if not more; and they never would have had access to the information that could have prevented it.

I am shocked and upset that this has happened, and I am fully aware that I deserve the general sentiment in relation to me. Again, words cannot express how sorry I am. I will be taking any and all possible action in order to mitigate the damage caused by this event, in turn likely caused by poor management by myself.

And yes, I know sorry isn’t good enough. I know I have fucked up on a catastrophic level. There should have been better procedures in place.

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