EgoPay shutting down US operations
In less than a year three major darlings of the Ponzi payment processor niche have ceased operating in the US or been shutdown entirely.
Co-incidence or evidence that US regulators are increasing efforts to go after payment processors who are lax with fraud prevention, whether willingly or not?
For those who came in late, last May Libery Reserve was shutdown after a joint investigation between Costa Rican, US and Spanish authorities spanning 17 countries. Six months later Vladmir Kats, co-founder of Liberty Reserve, plead guilty to ‘money laundering and operating an unlicensed money transmitting business’.
Then, in that same month Payza abruptly ceased processing withdrawals and deposits from US based clients. It was initially reported that the Department of Homeland Security had seized Payza’s funds as part of an ongoing investigation, but to date nobody seems absolutely certain of what went down.
What is certain though is that since November 2013, Payza’s US clients’ access to their money has been suspended. The fate of these funds and whether or not Payza will be subject to further regulatory action in the US remains unclear.
Now, EgoPay have just announced they are “closing” all accounts currently held by US clients.
Whereas Payza and Liberty Reserve’s shutdowns were involuntary however, EgoPay instead appears to be taking a more pro-active approach. No doubt riddled with fraud and facilitating untold amounts of financial crime via their association with copious amounts of seedy schemes, EgoPay would appear to have taken the drastic measure of shutting down in the US rather than showdown with US regulators at a later date.
Damn those pesky “United States laws”.
What’s interesting is that EgoPay’s announcement, made on the 14th of February was preceded by the abrupt suspension of debit card services.
On the 13th of November 2013, EgoPay announced that they had
joined partnership with debit card provider ePayments.com, one of the best payment facilitators in the world. You will be able to withdraw your EgoPay funds to ePayments.com account and it will allow you to pay for any product or service anywhere in the world.
On February 12th however, that partnership appears to have been terminated:
ePayments withdrawals have been suspended until further notice. We apologise for the inconveniences.
The announcement, made just two days prior to EgoPay shutting down in the US, fails to clarify why the partnership with “one of the best payment facilitators in the world” was suspended.
On their website, EgoPay advise
EgoPay is an online payment gateway which offers a simple and cheap way to purchase online goods, pay for services, subscriptions, entertainment and much more by using e-currency.
EgoPay is registered in Seychelles under the registry number 112109.
In Ponzi and pyramid scheme circles EgoPay was largely seen as an alternative to Payza, after they started to crack down on the types of business they permitted to use their services. It is widely accepted that EgoPay is run by the same people behind Payza as an offshore scam-friendly payment processor alternative, but I was unable to confirm the Payza -> EgoPay relationship on the EgoPay website.
With US clients of EgoPay having to transfer funds out of the processor by the end of March, that leaves two major players remaining who accept funds from US investors; SolidTrustPay and i-Payout.
SolidTrustPay is more popular than i-Payout, as it pretty much has an open-door policy on who signs up and the types of business it provides payment processor services to. If the current trend regarding payment processors who engage seedy schemes continues, I’d be surprised if they last out the year.
i-Payout seem to be making attempt to try to clean up their act (or at least spamming to give off the impression that they are), however they remain the processor of choice for a number of dubious MLM companies, the most prominent of which is currently TelexFree.
In addition to this, the company also openly permits clients to transfer funds between the schemes it provides payment processor services to. The following communication was recently sent by i-Payout support to a client, who had asked about the transfer of money between i-Payout client accounts:
There are several ways to fund the account by method of Bank account in Europe : Sofort (automated and almost instant) and manual (instructions for the EU bank will be provided to you to complete the transfer)
Transfers between existing accounts but with different programs are permitted based on the Merchant settings. Meaning if this new company allows for their members to transfer funds from existing eW accounts and the company ‘hosting’ the funded eW account allows for such transfers, they will be able to make the transfer.
Should you have any other questions please feel free to contact us at any time.
Other than the owner of the scheme flipping a switch on their end to permit the transfers, there appears to be no regulation or compliance applied to funds transferred within i-Payout client service accounts. Money laundering between various HYIP, pyramid scheme and Ponzi scams using i-Payout couldn’t be any easier.
Should no changes be made to their current client roster however, and if i-Payout continue to service a roster of newly launched dubious schemes throughout the year, I’d also be surprised to see them last out 2014 too.
Adding to the regulatory pressure both i-Payout and SolidTrustPay (STP) are likely to be under, it’s obvious that with EgoPay going under they’re going to see an increase in activity as scams previously using EgoPay flock to either company. With this comes even more exposure, at a time when both companies are probably looking to fly under the radar.
Published only a few hours ago on social media, here’s one EgoPay client’s current predicament:
This would be a disaster on my end since I have no other processor to use since stp is banned in my state ….it would spell the end for me…I hope it isn’t true ! I’ll have to resort to VPN or proxy network… Is it safe to do that ?
Would be better if I had 60 days lol.
I somehow got a stp account even though it is banned in my state and I am nervous about doing any business with that.
Looks like my HYIP days are nearing a close.
Meanwhile whether or not EgoPay pulling out of the US was truly of their own accord, was a result of the fallout of whatever went down with Payza or possibly even an entirely separate regulatory investigation, remains to be seen.
i-Payout recently change the main account to wich transfers are made by Telexfree promoters from a bank in the US to a bank in Germany Deutsche Postbank, is this in anticipation of regulatory investigation and possibly shut down?
An idea like that won’t have any effect. Bank records are stored for 10 years or more, and there won’t be any more difficult to get transaction data from Germany than it will be to get it from the U.S.
They have most likely done it for practical reasons = use a bank in the countries where the momentum currently is = in the European Union (it’s an internal market, a bank in Germany can serve all countries in the EU).
But most likely they will probably use more than one bank.
Could be that, or the US bank might have told them they’re not interested in handling Ponzi money anymore. Or perhaps the German bank aren’t fussed with all the Brazilians signing up with fake details to deposit money with them. Few possibilities there, none of them reassuring.
hello, why the US government is not thinking of the people who might be in a trouble because of this, i know that they are doing this only for the citizens betterment but their should be a prior notice for the same…
If they get their money back, then what is the problem?
It’s not as if DHS seized the funds like Payza…
Paypal is no different from all those payment processors but USA don’t want to go after them because of money and because they’re in USA. Many people think that USA wants to eliminate paypal’s competition. I use paypal for personal use and I’m not going to be bully by the USA government to use paypal for business.
I want to use perfect money and payza for my online business in the near future. I’m from Canada and the USA should just worry about their own problems. USA are no different from any of those countries that they think are dangerous…so they should stop being self righteous (I’m not referring to everyone in USA).
Except that they’ve banned MLM altogether due to the fraudulent nature of so many companies using third-party payment processors.
Government conspiracy? Fail.
PTC has allot of fraud too and that isn’t banned. Many people lose their money with paypal and get their accounts limited for no reason or for stupid reasons.
I have lost money a couple times through paypal just for using ebay and they have crooks selling goods which makes them no different than other payment processors. i have been sold a bad product that almost killed me and paypal still let the company sell over thousands of products on ebay.
everyone says that there has been payment processors that were suppose to shut down but they didn’t because the government got pay off. paypal is in usa so the government collects money from them. why do you say fail? do you work for the government?
Cool story bro. Me having chocolate icecream after dinner has about as much to do with paypal not servicing HYIP frauds as you losing money.
Yeah. It had nothing to do with all the money laundering and what not going on.
Oh dear. That’ll be your first and last derail attempt.
I never used HYIP!. It is hard to communicate with someone who is being sarcastic. Well you know the stuff i say are legit so you can’t give a constructive argument.
I lost money when i return a bad item from ebay and the merchant only gave me back some money so their resolution sucks. I never said that i lost money because they ban HYIP. For the last part you can only be 100% sure that the government didn’t get money from the payment processors that were suppose to be shut down unless you are working for the government! so you fail.
I have read articles and watch news about the usa government making foreigner countries shut down their payment processors that think are laundering money and people have said that some didn’t shut down because they got lawyers and because they payed the government money to stay online!.
Even payza is getting problems but they are still online. Payza checks people’s identity just like paypal but they are still have problems! so this lead me to believe people when they say that the usa government does want to eliminate paypal’s competition regardless if the payment processor does good identity checks to prevent laundering of money.
Payza does not launder money.You should do more research on the topic before you make comments like this. You don’t seem to be the owner of this site so i’m done writing to you.
I think this is the third time I’m saying this: you losing money has nothing to do with the differences between Payza servicing countless fraudulent businesses through EgoPay and Paypal refusing to do business with them.
You lost money buying stuff off dodgy sellers on eBay? Here’s a tissue, nobody cares.
Cool story bro. Again, if you can’t back up what you’re saying with facts – don’t bother trying to introduce your conspiracy theories into the discussion.
Payza had their funds seized in the US. Neither the company or US regulators have thus far commented explicitly on what happened.
Right. They just had their US funds seized because of some paypal eBay conspiracy.
Usually I entertain the various Looney Tunes we get on here but you’re becoming quite stale.
Then “many people” are barking up the wrong tree. Payment processing, i.e. e-transfer of money, is heavily regulated across the world, to cut down money laundering by illegal enterprises such as narco trafficking.
Even the European Central Bank is quite aware of the problem. FATF (financial action task force) Has a paper detailing variety of crimes documented OUTSIDE OF THE US that had been perpetrated through internet payment systems… and how to regulate such.
Blaming US and Paypal for Egopay’s problem is convenient, but ultimately will get you nowhere.
Hello to all! I do not well speak English and is of use to me as Google translation.
I look for information to transfer how some money on my account Egopay. I am and I live in Switzerland.
Since the United States changed things it is very difficult to find a solution with my Visa card. And to use bank wire a little frightens me.
I have an account Payza and I wonder if I can transfer some money since this account on my account Egopay. Thank you for your help (assistant) and your answers!
You’ll probably have better luck with Egopay support (assuming they still have a support department).
Need to find out what Processor Payment that is Safe to Use..! I have a Paypal but they don’t use as their Processor.
Check with STP but they don’t do business for some countries. Am a US Citizen but am out of the Country right now.. Check with Perfect Money, but they require u to deposit a large amount to start with.
Any help regarding this issue is Highly Appreciated.. Looking forward to hear from u the soonest, Thank u and best regards,
Paypal process payments for thousands of businesses. Shouldn’t be a problem unless you’re running something suspect.