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LitePay, the a much-anticipated Litecoin payment processor, has abruptly terminated its operations, announced Litecoin Foundation founder Charlie Lee on Monday. 

Kenneth Asare, the CEO of LitePay, notified the Litecoin Foundation “that he ceased all operations and is preparing to sell the company.”

Litecoin Creator Expresses Regret for His Support

“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,” tweeted the Litecoin creator. “I am sorry for having hyped up this company and vow to do better due diligence in the future,” said Lee. In December, Lee suggested that he “sold and donated” nearly all of his litecoin holdings.

The Litecoin Foundation also posted a similar statement regarding the matter:

“We are greatly disheartened that this saga has ended in this way and we apologize for not doing enough due diligence that could have uncovered some of these issues earlier. We are currently working hard to tighten our due diligence practices and ensure that this does not happen again.”

LitePay- Really “Too Good to be True”

LitePay claimed that its crypto wallet and a “LitePay debit card” would enable users to perform litecoin to U.S. dollars conversions. The project was unveiled in December of last year and the launch was supposed to be in February 2018. But according to a Twitter post  made on February 27th, LitePay had only begun to roll out its service.

In an email sent earlier this month to customers, LitePay stated that it was “checking all perspective merchants,” and restricted card registrations “due to the negative perception and drastic actions card issuers have towards cryptocurrency companies.”

The Foundation explained in a post that it contacted the business founder after LitePay was unresponsive at their Ask Me Anything session on Reddit, and expressed concerns over their” less than transparent nature.”

“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,” explained the foundation.

But, in spite of this setback, the Foundation remains hopeful and open to future projects, stating on its website that “Litecoin was doing perfectly fine before the promise of LitePay and will continue to do so.”

 

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