Moolah Announces Bankruptcy Plan Following Money Crisis

Moopay LTD, the digital currency services business better known as Moolah, has announced that it is shutting its doors and filing for bankruptcy protection.

According to Moolah, its closure stems from an unexpected rise in operational costs and the loss of critical business partnerships in the past month.

In its announcement, Moolah said that customer funds are secure and that users of its consumer and merchant money management platform can process withdrawals until 31st October, after which time Moolah will shut down.

Moolah CEO and founder Alex Green said that it no longer had the funds to continue functioning as a business after incurring high legal and operational costs during the past 10 months.

The startup was not without controversy though, as tensions between Moolah and members of the altcoin community often played out online for all to see.

Many customers of both Moolah and MintPal expressed fear that the closure would affect withdrawals from both platforms.

In its bankruptcy announcement, Moolah said that efforts were made to secure new revenue streams, which included a last-ditch attempt to build partnerships in Asia.

For now, some of the biggest questions surrounding the Moolah shutdown focus on the future of those who took part in the investment initiative it ran.

Dogecoin co-founder Jackson Palmer told CoinDesk that the Moolah closure demonstrates the risks of crypto crowd sales and the businesses that conduct them.

"What saddens me the most is that Moolah took their funding from random Internet-goers as opposed to rich venture capitalists who can afford to take the risk and financial hit. These 'investors' are now in a position where they'll never see their money again, and have minimal legal recourse."