Stormpay Problems Summary

This is from the Talkgold forums, it seems to do a good job of walking you through the events that have taken place:

Let's look at the events as they unfolded:

STORMPAY creates sister company called NETIBA and misleads the public stating their bank will now give them a break on rates, which they will pass on to members, contingent upon "third party verification".

STORMPAY collects upwards of $5M in NETIBA verification fees - almost overnight.

EGOLD Gets Raided by FBI

12 DP, perhaps hastily, denounces EGOLD.

12 DP forms partnership with EMO as an alternative to STORMPAY and for displaced EGOLD users.

12 DP makes a request for a large sum of money to be transferred from STORMPAY.

12 DP waits.

STORMPAY DELAYS

12 DP asks again.

STORMPAY informs 12 DP they are unable to transfer money and must do so "by check or direct deposit".

12 DP waits.

STORMPAY DELAYS

12 DP asks again.

Hundreds of HYIP sites using code by GoldCoders (who created the preponderance of HYIP site scripts on the web) get hacked. The sites may have been non-licensed site using GoldCoders code, hence why they were hacked.

This caused an influx of massive chargebacks by HYIP investors across the net.

STORMPAY informs 12 DP they must drop EMO and use SP exclusively in order to receive funds.

12 DP acquiesces.

12 DP waits.

STORMPAY posts a news release that all HYIP and auto surfs sites must use STORMPAY exclusively if they want STORMPAY to continue managing the risks of chargebacks (never mind that 12DP has probably had little to NO chargebacks since they have a track record of always paying).

STORMPAY DELAYS in paying 12DP.

STORMPAY, without warning or explanation, disables 12 DP account.

STORMPAY does not answer calls or emails.

STORMPAY comes under fire for disabling 12 DP.

STORMPAY disables chat to keep people from discussing the matter.

STORMPAY ignores efforts to resolve the matter from 12 DP and customers.

STORMPAY begins disabling accounts of other surf sites.

STORMPAY takes down their own SURF programs.

STORMPAY takes down all advertising for surf sites and HYIP sites.

STORMPAY refuses to make a public statement in its defense.


Observation:

STORMPAY probably did try to move allot of money at once. This may have raised a flag when at the same time there was a major influx of chargebacks. This resulted in a freezing of those funds. That is SOP for all merchant companies. I have experienced this first hand with Card Services of America.

STORMPAY, caught with their pants down, will likely say little and let others take the fall where they can.

Yes, "an organization" is likely investigating - but not specifically 12 DP. It is likely not even a federal organization though after all this I would not be surprised if they get involved.

STORMPAY was clearly cleaning house as quickly as possible because the investigation would illustrate they were merchanting funds for programs they are not suppose to be merchanting. They were making so much money form it, it was really hard to resist.

In the final summation, I believe 12 DP would do well to reinstate a relationship with EGOLD. Anyone who does their homework will see that EGOLD is not going anywhere. They own more Gold than Canada and almost as much as Australia. They have become a force that too if ran over to much would economic folly for the US. The US is already on the edge.

In the end, unless STORMPAY bails, it is likely that everyone will get their money, even 12 DP. But everyone should settle down. It may take some time and the more agencies invited to the party will only slow things down.