24 CommentsUpdate: Jonah Dorman of GAW Miners reached out with the following statement:
We choose to disable Stripe and reach out for more clarification. As it stands, your article is misrepresenting the facts of the situation.
This information runs counter to the information provided to us earlier in the day by Stripe representatives before what they called a “corrective action” would be taking place.
Late last night, Joe Mordica and the PayBase team were excited to launch a new feature allowing users to buy XPY with a credit card on PayBase.
The system relied on Stripe and was disabled this evening after Stripe found the service to be in violation of the Stripe Terms of Service. The Stripe account, registered to Paybase, LLC, was found to be in violation late last evening and was disabled this evening.
Stripe spokesperson Dale Watson told Coin Fire,
We can’t comment on another Stripe user’s account.
However, another unnamed source intimately familiar with the situation from within the company told Coin Fire,
We spent the better part of last night trying to figure out what this website was. We hadn’t heard about it until reports started flooding in regarding it and once we started evaluating what it was they were doing exactly we found it was most certainly in violation of our TOS. Several members of our team were discussing this.
The team behind this site had the audacity to even attempt to limit transactions so as to not set off our warning systems but after digging in a bit during the day we were able to determine exactly what they were doing. The post stating they would limit transactions (trying to hide what was going on from us) on the forums sealed the deal though.
While neither source gave Coin Fire an exact reason for the suspension outside of a TOS violation, it is widely believed PayBase violated the prohibited business section which states:
By registering for Stripe, you are confirming that you will not use the Service to accept payments in connection with the following businesses, business activities or business practices. […]
Virtual currency that can be monetized, resold, or converted to physical or digital products and services or otherwise exit the virtual world (e.g., Bitcoin); sale of stored value or credits maintained, accepted and issued by anyone other than the seller
Many in the Hashtalk community had speculated earlier in the day that Stripe and PayBase had worked out a special deal allowing the virtual currency transactions to take place, but Coin Fire has learned that Stripe is not affiliated nor partnered with PayBase, GAW Miners, or Josh Garza in any manner.
Coin Fire will continue to watch for updates regarding this developing situation.
To me, it somewhat looked like a scam weeks before the launch. In fact, what tripped my gut feeling was the fact that this coin was introduced in the likes of a “no-losses” ponzi full of indicated guarantees… being underlined by the coin-hyping noobs with religious XPY-loving tendencies but nothing up their sleeves that could explain what’s so special about this coin. Personally, I didn’t need more at that time to know I was going to avoid XPY as soon as it was going to see daylight. And what can I say? Right now, I’m pretty happy about my gut feeling. 😉
(Nice articles around here btw – keep up the good work!)
Who is his idiot, Stan? Or did you mean you are (you’re) an idiot. Kind of sound like you’re the idiot, Stan.
It is a shame that guy at Stripe had to be fired for being unprofessional and tarnishing Stripe’s image within the payments industry. Stripe had 153 employees so it isn’t like people couldn’t easily figure out who the leak was. But at least Garza has one less avenue to scam with. People who used Stripe to pay should all be filing chargebacks ASAP.
Coco just left a Bitcoin tip worth 0.20 USD (703 bits/$0.20).
https://38.media.tumblr.com/e7a40980e1464b31d939efffd301ecba/tumblr_n33re1WW8s1tq4of6o1_500.gif
Yet somehow Stripe allows other companies like circle to complete these kind of transactions?
This article is misinformed one sided with out proper references. Looks like a single call “may” have happened and Brendon got zero information so decided to make the rest up.
what about all of the other companies that accept credit card payment for crypto currencies? I know that at least some of the use Stripe so this policy mentioned is changed for different customers? Why have you done zero investigation into other companies? Where is your back story?
However Stripe did halt transactions when a concern was brought up that Paybase might have been violating their TOS. That is being responsible. Now if Paybase came to some sort of arangement with Stripe afterwards to continue the transactions, it was hopefully done properly.