Litecoin Foundation Apologizes After LitePay’s Abrupt Closure

You might be aware how the LTC-based payment processing startup, a.k.a. LitePay, abruptly vanished from the market inciting notions of an exit scam. Following this build up, both the Litecoin Foundation as well as Litecoin creator Charlie Lee came out and apologized.

Litecoin prices surged during mid-Feb following the news on LitePay’s launch. The payment service was supposed to introduce both merchant based services and an LTC-funded debit card for their users. But sadly, such a launch never came, and on March 26, the Litecoin foundation informed that LitePay CEO Kenneth Asare is in talks about selling the company.

According to the Litecoin Foundation, Asare was unable to reproduce a “satisfactory picture” of how he is investing the money, and also denied to show records or details regarding how things were progressing. Due to these reasons, the Foundation ceased to fund the startup.

In a statement made by the Litecoin Foundation, the company expressed their regret with the current course of development:

“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,” the statement continued. “We are currently working hard to tighten our due diligence practices and ensure that this does not happen again.”

Charlie Lee also took to Twitter to seek an apology:

“Like everyone else, we got too excited about something that was too good to be true and we optimistically overlooked many of the warning signs. I am sorry for having hyped up this company and vow to do better due diligence in the future. ”

The foundation has also assured that despite how things turned out, Litecoin is functioning perfectly fine without LitePay, and will continue to do so.

In conclusion, the foundation stated, “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.”

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