One of the most polarizing figures in the cryptocurrency world, Moolah, is closing its doors after 10 months of operation.
The company, which operates under Moopay LTD, has cited “a volatile environment”, “rising costs and dropping revenue”, and “the loss of a number of key clients” as the reasons for its closure, and will be filing for bankruptcy and dissolution.
Once the bankruptcy proceedings are completed, Moopay plans to liquidate all its assets. It will then pay its creditors, and anything left will be divided among the company’s investors.
Another Mt. Gox?
Those who were burned by Mt. Gox, Dogevault, Flexcoin, BitXoin and others are extremely wary of bankruptcy proceedings in cryptocurrency-related businesses.
But Moolah has assured its users that “all client funds held in consumer accounts are safe, and can be withdrawn as per normal”, and will be available until the 31st of October. After that, users will receive an email notification asking where they want their funds to go.
The community could hardly be blamed for being skeptical of such claims. Nevertheless, it remains to be seen how easily Moolah users can access their funds.
A Controversial Figure
Moolah’s history within the cryptocurrency world has been marked with victories and controversy.
Moolah CEO Alex Green was involved in the original Dogecoin Foundation, which quickly imploded amid infighting. Green claims that members of the Dogecoin Foundation harassed him and his company, while the others allege it was Green who dissolved the Foundation in the first place.
Green was also at the centre of a controversy around the company UltraPRO’s attempt totrademark the Doge meme. While Green believed in fighting it, Dogecoin cofounder Jackson Palmer disagreed, which led to a very public confrontation and Palmer’s exit from the Dogecoin community. Though he has since returned, the rift between Green and Palmer remains.
Moolah has also recently taken control of the beleaguered and controversial cryptocurrency trading platform MintPal. Earlier this year, MintPal was hacked in an event which caused 30% of the world’s VeriCoin supply to be stolen. Moolah took control shortly thereafter, though MintPal’s relaunch has been marred by delays and technical issues.
As for MintPal’s future, Moolah claims to have “sourced a new management team for it”, though it will be coming down until the current issues have been resolved.
However, Moolah has been involved in a number of Dogecoin’s victories as well. Without Green’s donation of 20 million DOGE, the Dogecoin community would likely have missed out on what may be their greatest victory so far, the Dogecar.
He also took an active role in Dogecoin’s fundraiser for the Washington mudslide victims earlier this year.
What do you think of Moolah, and its CEO Alex Green?
Moolah Declares Bankruptcy, Citing "Volatile Environment"
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