This afternoon, Payza, an alternative payment processing platform, has been charged by the US government, accusing the two Patel brothers (the company founders) and the company itself for money laundering and operating an Internet-based unlicensed money service that processed more than 250 million dollars.
The article, taken from the site of the US Immigration and Customs Enforcement states that:
The defendants, through Payza.com, are accused of operating a money transmitting business that operated without the necessary state licenses and knowingly transmitting funds that were derived from illegal activity. Despite receiving cease and desist letters from various states, and being told by a consultant that operating a money transmission business without the necessary licenses was a crime, Firoz and Ferhan Patel continued their illegal activity, the indictment alleges”
One of the founders, Ferhan Patel, was arrested in Detroit last Sunday. The other brother still remains on the loose. Payza was an acting name for a Canadian based company called MH Pillars, Ltd. Supposedly they served clients like Ponzi schemes and child porn rings knowingly.
The company Twitter account has stated that it is only an indictment and that it does not classify as evidence of guilt. they also state that they are working on a solution. All accounts are safe and funds are secured, according to Payzaofficial.
Payza has offered their clients the service of buying cryptocurrencies from within its platform since 2014. Recently it added altcoins to their available currencies and had made an agreement with Dash to offer Dash wallet services too. An opposite policy to Paypal, their direct rival, that does not let its users buy cryptocurrencies with their services. They are facing some serious charges that could end their business. We will see how the story unfolds in the near future, and how Payza’s clients will be affected by this measure.