CoinPayments suspends services in the US

CoinPayments Leaves The US Soil: An Insight

  • CoinPayments, a global crypto payments gateway, has suspended services in the US
  • The users of the platform have been advised to withdraw funds before July 19

Global crypto payment gateway CoinPayments has planned to close its operations in the United States without citing any appropriate reason behind the decision. As per the recent announcement by the company, users have five days, till July 19, to withdraw their funds from the platform.

CoinPayments has blamed recent Anti-money laundering regulations and massive market changes for the sudden closure of its operations across the nation.

“Unfortunately, due to recent AML regulations and changes, we are no longer able to provide services to the United States,”

a spokesperson from the company told BleepingComputer.

Therefore, as the company claims, the United States-based accounts have been flagged and will be seized on July 19. 

The United States is not the only nation where the company has closed its operations. Instead, the country has joined the list of around 34 countries in which CoinPayments and its parent company, UAB Star Ventures, do not trade (including countries that have been sanctioned by the U.S. Treasury’s OFAC).

Recently, the U.S. Treasury Department has presented a comprehensive framework aimed at the digital currency ecosystem in accordance with the Executive Order issued by President Joe Biden back in March 2022.

The payment service provider CoinPayments sent private emails to its customers, prompting the possibility of an “exit scam” or a mysterious incident. The short notice given by the exchange has resulted in a serious panic among the users, who are also complaining about the difficulty in funds withdrawal.

The combination of short notice and announcement via mail has left people concerned, with many suspecting that this was a way to steal user funds via an “exit scam.”

An “exit scam” is a fraudulent technique by a commercial operation that involves pretending to have lost access to funds or commodities as a result of being hacked, seized by the government, slammed with new regulations, or challenged with other issues.

As they steal the products or funds from their victims, they quietly inform them that they are unable to refund them or provide the services they have been charged for.

Parth Dubey Verified

A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.

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