Litecoin founder apologizes after Lite Pay vanishes: ‘We Got Too Excited’
Due to the abrupt closure of LitePay, Litecoin creator Charlie Lee and the Litecoin Foundation have both individually apologized for this misconduct in failing to have a due diligence on the LTC based payment processing startup. Because of its very abrupt closure, it has sparked up several allegations with others mentioning that they have created an exit scam.
The Litecoin price has surged in the mid of February on the news that they would offer an LTC funded debit card and merchant services that were to be launched later in that month. But the reality is that, that launch had never happened and in a statement earlier that dated March 26th, the Litecoin Foundation had revealed that the CEO of LitePay, CEO Kennet Asare had informed that all such operations in regards to the launch had been ceased and that they intended to sell the company.
From the Litecoin Foundation’s statement:
“Prior to [being told that LitePay was ceasing operations], the foundation had approached Kenneth regarding his less than transparent nature with the company and to express our, and the community’s, concerns regarding his recent Reddit AMA. 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.”
The statement continued, “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.”
Anyhow, despite all the controversies that had happened and despite all the allegations, the foundation had stressed that even without LitePay, Litecoin was doing fine and will continue to do so.
“The ecosystem is far bigger than one company and is continually growing with support from many others with market-ready products joining the space and fulfilling their promises to make it easier for the world to use Litecoin,” the foundation concluded.