Moolah CEO Resigns Amid Growing Public Outcry, Criminal Allegations

Published on by Coindesk | Published on

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Alex Green, CEO of digital currency services startup Moopay LTD, known commonly as Moolah, has resigned following the company's withdrawal of a proposed bankruptcy plan and the release of evidence allegedly tying him to fraud and past criminal activity.

The plan for Moolah to continue operating despite its financial troubles was announced on 15th October.

In the short term, the company said, Moolah will be moving away from consumer-facing services to focus on the merchant digital currency market.

In the wake of the resignation, members of both the dogecoin community - some of whom were investors in funding rounds conducted by Moolah, took to both Reddit and Twitter to voice their fears about both the future of the company they invested in and the safety of funds stored on either platform managed by Moolah.

Green's resignation post did not include specific plans for addressing investor concerns regarding Moolah PIE shares, purchased during three investment rounds.

On the dogecoin subreddit, a number of PIE investors voiced frustration that they were kept largely in the dark of the company's troubles, which became apparent this week following Moolah's failed relaunch of MintPal.

Several months ago, Moolah handled the initial coin offering for the syscoin project.

The alternative digital currency initiative got off to a rocky start, prompting Moolah to put in place a staggered release plan for the 750 BTC it held following the ICO. The Moolah bankrutpcy, abrupt turn-around and subsequent leadership collapse prompted the syscoin development team to reach out to the company in order to have the remaining ICO funds released.

Syscoin team manager and coder Dan Wasyluk said in a 16th October post on Bitcoin Talk that his team had begun looking into legal options after Moolah did not meet a pre-established 14th October payment deadline for the amount of 250 BTC. That amount has since been released in the form of 50m syscoins, which according to Waslyuk were purchased during the ICO as a means to support the process.

The now-ex CEO of Moolah had long faced criticism for questionable business practices.