I just heard some pretty scary news about the EvoCash payment processor. I have heard news from several sources that they are having major problems with people's money and a lot of people are not able to withdraw. There are several large MLM programs that use EvoCash and they are very worried that EvoCash may be having much bigger internal problems than they are letting on.

If you have an EvoCash account, you should take this information seriously and do a bit more research and decide if you want to take out your money or transfer it elsewhere as soon as EvoCash resolves their issues. As of right now (3:27AM PST), their site says they are undergoing maitenance so i can't login to my account to see if everything is still normal.

Thanks Jason for the heads up!

Hi,

The admin of one of the programs I belong to sent this regarding EVOcash.

I hope this helps.


Here is some information for you:

I will try my best to summarize the events so as to not waste your time
but I want to give you an accurate history of the events leading to
these FALSE rumors.

1. EVOcash does NOT have a cash flow problem whatsoever. It has
never had a cash flow problem. The source of this rumor is the result of a
ponzi HYIP known as Freeland Opps (FLO) promising 120% return a month
among other things.

2. FLO has been around for about 7 months. FLO first used eGold until
eGold kicked them out. They then used ebullion and were kicked out.
Next they went to Virtual Gold and were kicked out for trying to launder
money and abuse the system. They finally ended up at EVOcash.

3. They used and recommended to all their members to use a proxy
anonymous tunneler when accessing anything on the internet. This software
gave every member the same IP address. So as the membership grew and
more and more of these FLO members opened and used their EVOcash
accounts, it quickly became a security issue for EVOcash. Over 1300 accounts a
day were all using the same IP address. As you are well aware this is
a security nightmare when trying to monitor internal accounts for any
fraud or hacking attempts.

4. EVOcash asked FLO for several months to stop using this tunneler
when accessing the EVOcash site. FLO refused and told their customers to
continue to use it. EVOcash warned them again that they need to comply
with this request for security reasons. FLO was reluctant to pass this
request on to their membership and rarely bothered to even reply to
Evocash's requests.

5. During this whole saga, X-Changers was performing FLO's
out-exchange requests on a daily basis for their members. FLO admin would send us
a batch file everyday for us to process. They would pay us in eGold or
EVOcash and then send us the batch file. The files would contain the
list of bank wires, checks, Ecurrency transfers, etc,,, that we needed
to perform.

6. We performed these requests for two months with no problems at all.
FLO was moving an average of about 70k-100k a day through us.
Unfortunately, FLO still failed to comply with the requests made by Evocash's
security department however we did not pay much attention to this as we
were busy handling the FLO member redeem requests.

7. Everything was fine between FLO and X-Changers until the first week
of August. Then things changed. FLO announced to their membership
that they had a severe key logger trojan within their database and this
security breach forced them to eliminate all FLO out-exchange options
except for bank wires. They also told members that due to this security
problem, they could only redeem $1000 a WEEK out of the FLO program.

8. When we began to receive the new "limited" out-exchange requests
from FLO we were shocked. We expected to see wires for around $1000 or
less. What we found was much different. 99% of the wire redeems were
for a $1000 or less because of the imposed limit by FLO. However, to our
surprise every batch file contained wire requests of 40k, 50k, 60k, 80k
all going to about 4 different accounts INCLUDING an anonymous atm card
out of Russia. This continued to happen day after day. We researched
the 4-5 companies the wires were being sent to and discovered they are
all owned by the same person. It was clear to us that FLO was limiting
what their members withdrawal, while at the same time they taking out
200-300k behind the members back. These actions do not fit with a
legitimate company. It was clear to us they were trying to launder funds
through our service at their members expense.

9. Despite our opinion of the above facts, we did not voice them to
FLO. We simply informed them that we could no longer perform their
redeem requests. This was on or around the 20th of August.

10. Meanwhile, Evocash's security department was still trying to get
FLO to operate their account in a manner that was acceptable to EVOcash
and to get their members to do the same. However FLO's attititude was
one of arrogance and that they could do whatever they liked. Finally
after several complaints about the FLO program from other account
holders, Evocash's security department had had enough and suspended their
accounts. EVOcash requested identification documents from FLO. FLO
refused to comply with this request.

11. FLO's response to this was to announce to their membership that
X-Changers and EVOcash had no fund available and that is why EVOcash
suspended the accounts. Here is where Graham Kelly with GoldNow comes in.

12. Since X-Changers stopped performing redeem requests for FLO on or
around the 20th of August, FLO had to try and find another exchange
maker to handle their member requests. FLO told Graham the story that
EVOcash and X-Changers froze their accounts because we did not have enough
money to cover their redeem requests.

13. Graham should have contacted EVOcash or X-Changers to discuss this
matter to find out what the truth is, but instead he jumps into bed
with FLO and says "I have done millions of dollars through EVOcash
successfully over the last several years, but if they have suspended your
accounts it must be because they have no money and are cash poor.

14. So FLO and Graham without ever getting the facts, send emails and
posts out telling customers to pull money out of EVOcash as fast as
possible because EVOcash was unstable. Of course anything like this,
creates panic among the masses because most people believe anything they
see or hear on the internet without substantiating the allegations behind
the posts.

15. All these rumors happened late Thursday night and into Friday
morning. I sent some very stern and truthful emails to Graham Kelly on his
actions. I pointed out that FLO had been kicked out of 4 major
ecurrency companies in the last 7 months. SO it was just nor EVOcash that had
a problem with them.

I also informed him about the Russian ATM card redeem requests. His
reply to me was as follows: "Actually, I have been seeking this info
out... but why the HELL didn't you mention it earlier, WHERE THE HELL WAS
THE WARNINGS FROM EVO-BLOODY- CASH re: FLO"

He is blaming X-Changers and EVOcash for not telling him what was
really going on with FLO. The reality is that he jumped into bed with FLO
without verifying any information and took the opportunity to bash
X-Changers and EVOcash while he freely admits that he has done millions of
dollars in successful transactions with EVOcash over the last several
years.

His actions and false rumors caused EVOcash to close his account,
return his funds and remove him as an official EVOcash exchange maker. But
as you know once the rumors start it is difficult to get them under
control.


Final thoughts - X-Changers has been in business for 4 years. EVOcash
has been in business for 5 years. FLO has been running their ponzi
scheme for 7 months. EVOcash has had no problems whatsoever honoring
withdrawal requests even for FLO customers. Yet FLO has been unable to
allow members full access to their "flo credits" since 10th August 2004
and is now telling customers that they need to wait about 4-6 weeks
before they can gain access to their "FLO profits". Sorry for the length of
this email, but now you know the truth and can form your own opinion.
Looking forward to our continued business relationship together and
moving beyond these ridiculous rumors.

Kind Regards,

X-Changers Admin

I got a question.

In the letter, Evocash or X-changer of whoever it is from, complains about the guy from GoldNow just accepting what FLO told him without getting the facts and how people will believe anything on the internet without substantiation.

Then sends this letter saying all these things about FLO including how they have been kicked out of 4 different exchangers, are removing thousands of dollars a day, etc.

Are we supposed to just accept this explanation without any proof?

Not saying FLO is good and Evocash is bad. Just would like some proof of any of the allegations being made.


EP

Well, its hard to take anything as fact, but it's best if EvoCash members are at least aware of all possibilities.

Oh most definitely people should be aware both in Evocash and FLO. Something is up. Exactly what remains unclear. But, warnings are appreciated from respected sources (that means you).


EP

FLO have gone...they were scamming everyone....
It would be nice if more programmes used Evocash.
I've never had any problems with them.
There are no transfer fees and you can transfer to picpay and paypal very easily.
Stormpay is ridiculous and is not even providing a good service for it's outrageous transaction fees.

I agree. Stormpay Simply Sucks! That should be their new logo "SSS"

haha...that's a good logo
We should stop using them if we can....It is difficult because we are so used to them and we all have money in our accounts so it's a vicious cycle.
They are making outrageous money out of us....

I dont use them for anything anymore unless it's absolutely necessary. I've already lost so much $$$ in fees with them.

And I was going to add them. Their site has been down all day. I'll stay away!

Dear Account Holder,

It is with great deal of sadness and regret that we have to inform
you of the closure of Evocash. After nearly five years of trading the
owners have reluctantly decided that they cannot carry on running a
business that is permanently under attack both financially and
physically and by continuing they are just prolonging the inevitable.
The reasons for the closure are many and varied but just a few of the
main reasons we will list below. In the last two years server and
hacking attacks had increased to between 25-40 attacks each day.
Although we have managed to deal with most attacks what is becoming
unmanageable are the frequent DDoS attacks that are happening to many
websites on a daily basis. The last big attack that took Evocash off
line for days was so big that it took up all of our lines and even
started to affect services in other countries. The daily cost of
dealing with hacking and DDoS attacks is way out of proportion to the
amount of profits that can be made from this type of business.

Many of our account holders probably know of the problems we have had
with a business called Freelandopps during the last few months and
this ongoing problem has had a very serious affect on not only
Evocash but other exchange businesses that deal with us on a daily
basis. There have been so many lies and rumours posted on forums and
talked about in chat rooms that even some of our own exchangers have
started to attack us and give us problems. This has become so bad
that our main exchanger X-Changers has told us that they will no
longer service our daily funding and redeems after the 14th October.
They have made it clear that the exchange service for Evocash will
not resume again until we have reached an amicable agreement with
Freelandopps. Any agreement, if in fact one could be reached with
Freelandopps, would be months in to the future, there is absolutely
no possibility of a quick solution.

The final reasons that made the owners decide to close the business
are the problems that exchangers are experiencing on a daily basis.
Over the years we have lost track of how many of the exchangers bank
accounts have been closed down for no apparent reason and in some
cases funds have not even been returned to the exchanger. Within the
last two weeks one of our main exchangers CashChange were ordered by
their National bank to cease operations immediately and were told
they could not operate as an exchanger in Europe. This came almost at
the same time that we were informed that Australian exchangers have
been advised that they have to apply for a licence to act as an
exchanger, which in our opinion will never happen. To add to that we
know of two cases where other exchangers have been told they have to
produce records of transactions. Evocash does not and never has
operated a system that allowed direct funding by an account holder to
their Evocash accounts and all account funding must go through an
exchanger.
If it is the intention of most governments to close down e-currency
exchangers, and we think it probably is because that is the only way
they can control the flow of money, then Evocash would not be able to
survive without the services of our exchangers.

Payments
All of the existing Evocash accounts and account transactions will
have to be thoroughly audited to compile a list of account refunds
that need to be issued. This auditing of the whole system is a
mammoth task and although we cannot give an exact date for its
completion, we will of course endeavour to get this completed as
quickly as possible. Once the auditing has been completed Evocash
will be sending you a check for your account balance. We are sorry
but there will not be any other payment options.

Your contact details
On the application form above we need you to fill the name that is to
go on the check and the address it is to be mailed to. This is
extremely important because without that we will have to mail the
check to the name and address that is listed as your current account
information. Please do not use this address panel to send Evocash a
message because only contact names and addresses will be dealt with
and any message you send will be filtered out.

Contact
During the auditing of all accounts we will not be accepting any
emails. We know this will be very frustrating for everyone but if we
leave staff answering emails it will not be very productive because
they will not be in a position to answer your questions.
All future news and updates will be posted within the account area;
please login periodically and check for these updates as this will be
your only means of checking progress. Messages that are posted in the
account area will be the only official messages that come from
Evocash. We would appreciate it if you would ignore anything you read
on forums or hear in chat rooms as most of these are people's
opinions and usually contain not one grain of truth.

Funding
No further account funding is being accepted and X-Changers have
informed us that any funds that they have received after Wednesday
13th October will be returned to the sender. If you have sent funds
to any other exchanger then you need to contact them and request a
return of the funds.

Redeems/Payment requests
Any redeems that have not been completed by an exchanger will be
rejected and sent back to your account and will form part of your
refund balance.

Purchase of Evocash
In the last three months Evocash has received four offers to buy the
entire Evocash system and take over all of the existing accounts.
Although two of these offers had no substance at all the other two do
have and were worth considering. The owners are still negotiating
with one of the companies at this time. We cannot say at this stage
if anything will materialise from these negotiations but please be
assured we will keep you up to date with any progress.

We sincerely apologize for the inconvenience this closure may cause
to our account holders.

Evocash