Alex Green is Ryan Kennedy Again and Syscoin Updates the Public

Syscoin have released further information regarding their legal action against Moopay Ltd (Moolah.io) and Alex Green, now known once again as Ryan Kennedy due to a change in his name on the 15th October. The initial claim notice also names Landon Merrill and Chelsea Hopkins as possible accomplices to Kennedy’s alleged crimes.

The notice indicates that Moopay Ltd has not complied with an injunction served by the UK High Court, an order to return 750 BTC to Syscoin. “The suspicion is of course, that you are not holding these bitcoins in any such escrow account and you have transferred them to yourselves for personal gain. Not only would this amount to a further breach of contract but it would also amount to fraud and theft.” – Initial Claim Notice, Selachii LLP

This transfer of wealth has been investigated by Coinalytics, “we have identified two accounts currently holding over 700 BTC. Each of these addresses received large bitcoin balances via the top recipient address.” the company continues, “The majority of transactions in each case took place on October 14, with the final transactions occurring early October 15.” Coinalytics explains, “we’re trying to tackle this issue with our Address Tracker. There should be an easy way to see where Bitcoin flows through the public blockchain.”

Since initiating legal action on the 17th October, Syscoin have been tentative while trying to answer questions from the public:

“While we always do our best to provide the community with as much information as possible in regard to this initiative, UK legal process is very strict. In that sense we will always err on the side of caution when it comes to releasing documents or information related to the case.”, Dan Wasyluk,

Wasyluk, the Syscoin Development Team Manager, continues explaining the situation:

“This action against moolah.io is of critical priority for us because of how it impacts all crypto-currency on both the development and the investment side of the equation – not just Syscoin.”

Syscoin partnered with Moolah for their initial coin offering (ICO). Syscoin provides a platform that aims to augment the Bitcoin protocol, by providing several “non native” services, “We’ve taken our own approach to solving problems we think are important”, Syscoin.

The original agreement stated that Moolah would receive 8.5% commission for holding Syscoin funds in escrow, for distribution during the IPO. Syscoin stated they were happy to honour this agreement, although Selachii LLP held the opinion that the prior agreement between the two parties should be rescinded due to breaches of contract.

Kennedy (Moolah) were allotted 48 hours to respond to the initial claim notice, and 72 hours to return the 750 BTC. However, Kennedy and his legal representation stressed that he did not have the bitcoin in question and that he realized they were missing on the 18th October 2014, one day after the Selachii LLP Initial Claim Notice.

“a number of accounts were showing depleted balances and negative balances which I identified in an audit on 18th October 2014.”
— – Kennedy

On the 19th October Kennedy responded to ongoing developments, providing his view on the situation:

“It recently came to my attention that moolah.io had been bleeding funds from the core platform. The audit process did not trigger on this, because the audit process looks for a difference between the sum balance of consumer accounts, and what is reported on the platform. Because of what is a giant technical oversight by myself, it did not take in to account any additional funds held on the platform, including funds managed on behalf of MintPal Limited, and funds held for third parties.”

MintPal, a company allegedly acquired by Moopay Ltd earlier this year, has also announced legal proceedings, “The law firm we have been working with is Selachii LLP, and I am looking into the possibility of raising $25K to cover the remaining costs in our legal battle against Ryan.”, Ferdous Bhai, director of the holding company that owns Mintpal and majority shareholder.

Bhai explains, ”the old servers still held roughly 1,000 BTC worth of altcoins that failed to migrate to Ryan’s ‘V2’ of Mintpal”

The total amount sought by the two companies seeking legal recourse is more than 4000 BTC, a small fortune certainly worth fighting for.

Kennedy continued his response by relaying that users had been taking advantage of double withdrawals allowed by a bug:

“The bug itself seems to have manifested as people being able to arbitrarily double their balances on a whim. This was reported when Moolah V2 was launched (both privately and in public), and was rapidly resolved – but it appears now that there was another vector to do this that we were unaware of. I am currently digging through the withdrawal history, and building a full picture of events to provide to the relevant authorities as required.”

He goes on to issue a public apology, concluding:

”I do not expect that the general populace will believe anything I have said here, and as the sole director of Moopay Ltd, I fully intend to cooperate with any and all law enforcement and regulatory agencies as required. Contrary to rumours, none have reached out to me as of yet, but I await any contact in light of recent events. I am not in hiding, and it would be very easy for any official body to find me.”

B.Holmes, author of The Range of Illusion and The Private Key installments, is currently located in Thailand, researching and writing about crypto. You can follow B.Holmes on twitter @BanteringB, or contact via email: [email protected]