Litecoin’s price has dropped significantly after it was revealed LitePay, the company which promised to facilitate easy payments with the Cryptocurrency, had collapsed.
The Litecoin foundation released a statement which said:
“A couple of days ago we were contacted by Kenneth Asare, CEO of LitePay, informing us that he has ceased all operations and is preparing to sell the company.”
“Prior to that, the foundation had approached Kenneth regarding his less than transparent nature with the company and to express our, and the community’s, concerns regarding his recent Reddit AMA.”
“It was at this time that Kenneth asked the foundation for more funds to continue operations.
“The foundation refused any further funding as he was unable to provide a satisfactory picture of where the money had been spent and refused to go into exact details about the company and show objective evidence to back up his statements.
“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. We are currently working hard to tighten our due diligence practices and ensure that this does not happen again.
“Litecoin was doing perfectly fine before the promise of LitePay and will continue to do so.
“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.
“In the end, this is a valuable lesson for us to have learned.
“Litecoin and our community is as strong as it has ever been and we look forward to many great things to come.”
Litecoin traded around 10% lower immediately following the announcement. The cryptocurrency is down almost 40% for 2018, so far.