Full Tilt points to DOJ seizures and payment processor problems to explain why players have not been paid.
Full Tilt Poker released a new statement yesterday addressing the question of why the online poker site’s former customers have not yet been paid back.
The statement, reproduced below in its entirety, points to Department of Justice seizures of $115 million in the two years leading up to and including Black Friday, as well as major problems with payment processors as the key obstacles standing in the way of players getting their money back.
The statement also emphasizes FTP’s ongoing efforts to entice new investors.
FTP claims that six groups including hedge funds, operators of other online businesses and individual investors have visited Full Tilt’s headquarters in Dublin to inspect their operation.
The statement specifies that in addition to new money, FTP is also seeking a new management team to reopen the poker site and get players back their money.
Reports indicate that this is the first of three statements in which Full Tilt Poker will address its financial situation in more detail.
Here is the full statement:
As is obvious from the events that have transpired since April 15th, Full Tilt Poker was not prepared for the far-reaching, US government enforcement effort of Black Friday.
The events of Black Friday came on the heels of prior government enforcement activities and significant theft. Over the two years preceding Black Friday, the US government seized approximately $115M of player funds located in U.S. banks. While we believed that offering peer-to-peer online poker did not violate any federal laws—a belief supported by many solid and well-reasoned legal opinions—the DOJ took a different view. In addition, as was widely reported, a key payment processor stole approximately $42M from Full Tilt Poker.
Until April 15th, Full Tilt Poker had always covered these losses so that no player was ever affected. Finally, during late 2010 and early 2011, Full Tilt Poker experienced unprecedented issues with some of its third-party processors that greatly contributed to its financial problems. While the company was on its way to addressing the problems caused by these processors, Full Tilt Poker never anticipated that the DOJ would proceed as it did by seizing our global domain name and shutting down the site worldwide.
Over the last four months, Full Tilt Poker has been actively exploring opportunities with outside investors in order to stabilize the company and pay back our players. At least six of those groups, including hedge funds, operators of other internet businesses and individual investors, have visited Dublin to inspect the operation.
We have recently engaged an additional financial advisor through an investment banking group to assist us in our search for an infusion of cash as well as a new management team to restore the site and repay players. While any deal of this nature is necessarily complex given the current regulatory environment, our players should know that Full Tilt Poker is fully committed to paying them back in full and restoring confidence in our operations
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