MooPay Scam Leads to Possible Bitstamp Blacklists

A former MooPay employee, Eoghan Hayes, recently claimed the company's CEO, Alex Green, has stolen 3700 BTC of funds from its subsidiary MintPal and was keeping them in a personal wallet. The coins have since moved to new addresses.

Hayes stated in a signed tell-all statement detailing his interactions with Alex Green (also known as Ryan Kennedy), and his experiences as a MooPay employee. One peculiar piece of evidence is an email from MooPay's server host on dated October 17th, 2014 which stated:

"The servers got suspended for non-payment. A few days later Ryan opened a ticket asking why the servers were down and we told him they were suspended for non payment. He then tried to pay by cycling through credit cards, which flagged in our system as potential fraud. This blocked future CC payments under the account."

"He then tried to pay with PayPal, and we unsuspended the machines. About 6 hours later the payments were disputed with PayPal as unauthorized and we then suspended again."

On October 18th, Green fired all his employees:

"If you all want to ensure you are protected? Fine. As of 23:54 GMT on October 18th, 2014 – the employment of each and every one of you is terminated in full. Any access, or attempt at access to company resources or information; past this time, will be dealt with accordingly by law. If any of you wants to talk, you have my email"

In wake of the controversy Bitstamp took to twitter today, stating:

"Thanks to all who notified us of the #mintpal coins. . We are vigilant on not let them pass through #Bitstamp"

These measures taken by Bitstamp could possibly help to establish a dangerous precedent of blacklisting coins. The exchange has recently stated it will be freezing customer accounts who are not currently in compliance with their AML policies.

A few months earlier Coinbase had been reportedly banning accounts with an association to seals with clubs.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>