CoinPayment to Shut Down U.S. Operations on July 19, Warns Users to Withdraw Funds

Global crypto payment processor CoinPayment and its parent company UAB Ventures are on the verge of exiting the U.S. market due to heightened security obligations and market changes, BleepingComputer reported Thursday.

CoinPayment Asks Customers to Withdraw Funds

As per the report, the crypto payment gateway cited the increased Anti- Money Laundering regulations and the unstable market conditions as the cause of their closure of business in the United States.

“Unfortunately, due to recent AML regulations and changes, we are no longer able to provide services to the United States. Hence the [U.S.-based accounts have] been flagged and will be closed on the date that is mentioned in the email that they have recently received,” the company’s spokesperson told BleepingComputer. 

Last week, the Cayman Islands-based firm informed its U.S. clients through a private email message about its decision to cease operations in the country. 

“In light of the constantly changing market in the United States of America, CoinPayment Inc. and UAB Star Ventures are at this time discontinuing services to and access our platform by U.S. users. With effect from July 19, 2022, accounts belonging to U.S. users will no longer be accessible,” the email announcement read. 

The crypto gateway, which allows users to send, receive and store over 2,315 digital assets, including Bitcoin and Ethereum, urged its U.S. customers to withdraw their funds from the platform to a new wallet before its closure on July 19.

An Exit Scam? 

News of CoinPayment’s decision to suspend business operations in America and its timing has left many investors concerned, with few wondering if this was another “crypto grab or an exit scam.”

Definitely could be a sort of exit scam, though just for a certain number of clients

— Ian Costa (@Ian_Costa18) July 12, 2022

While some users have successfully transferred their assets from CoinPayment, others still have trouble withdrawing their funds, and the company’s customer service is seemingly not helpful. The firm has subsequently sent a generic response to anxious customers requesting that they submit a direct request to its support system. 

Another Twitter user called out the company stating that it is yet to “address on social media that they are closing people’s accounts from the United States come July 19.”