Dogecoin Community hit by Moolah Scam
Over 1100 BTC have been reported as missing from Moolah, a financial platform offering consumer, merchant, and exchange services in the UK, US, and Ireland. The Syscoin developers reported Moolah owes 750 BTC and is initiating legal action via Selachi LLP. The other 400+ BTC missing were reported on the BitcoinTalk forums by forum users in a thread created by BlockaFett.
On October 14, 2014, Alex Green published Moolah’s post-mortem on the company blog.
“…we have rapidly burned through our reserves and are now in the position of having a negative balance sheet. Losing certain clients that we relied on for revenue, means that we do not have the funds to continue paying staff, or pay our suppliers. Our costs over the first year have been astronomical in terms of legal and operational expenses, and our staffing costs now greatly outweigh our incoming funds. A number of the team have spent the past 10 days in Asia (personally funded, not company funded) attempting to secure vital contracts that would ensure the future of the company, but these attempts proved fruitless..”
Interestingly enough, on October 15, 2014, Alex Green published Moolah’s resurrection on the company blog.
“While we used the word bankruptcy, I would like to make it clear that our consumer reserves are entirely solvent; and the plan was for a voluntary dissolution…After making the [post-mortem] post [on October 14, 2014], a number of people reached out to us – and some of these people included private angels and well established VC firms…After a number of internal discussions, we have found a way. Our core platform will be sticking around…We’ll be focusing on what we do best, merchant solutions. A simple but solid API for merchants. Easy storefronts for people wishing to sell good and services online. Instant conversion to FIAT with quick and easy payouts in local currency. Retail solutions.”
The rash decisions made and publicly announced attracted press attention and led to discovering Alex Green’s previous identity. Jackson Palmer and Ben Doernberg, Dogecoin community leaders, presented evidence that Alex Green is a well known internet scammer Ryan Kennedy also known as Ryan Gentle. However, Alex Green’s past identities will not bring back the missing coins.
Sources: Moolah.io, BitcoinTalk, CCN
Photo Source: gpforums