Garza has a controlling interest in the Bitcoin mining firm GAW Miners, along with many altcoin ventures. Paybase started to experience trading issues in January when the Securities Exchange Commission (SEC) began an investigation. This led to accusations that Paybase and GAW Miners were executing “fraudulent conduct in the sales of securities” with regard to the sale of their Paycoin digital currency. Like many altcoins, users are able to buy into Paycoin by exchanging Bitcoin, and Paybase would handle the transaction on it's exchange.
Paybase has a checkered past when it comes to withdrawals. All withdrawals were suspended from February 27th, 2015 to March 8th, 2015, when they claimed they were the victims of “a coordinated and very sophisticated effort to exploit the databases for PayBase and (related service) ZenCloud."
Threads on Twitter and Reddit over the several days show many people unable to withdraw funds from the site, even someone with the handle of GAW Founder:
"Withdrawals have been stopped for 7 days, GAW refuses to answer why and when they will resume. Josh Garza refuses to answer questions, support threads get closed on hash talk, and if you tweet him, he will block your account. I can’t withdraw bitcoins and they’ve been stuck on PayBase for a week." says Contractmine on Reddit late Sunday evening.
Calls made to Paybase's website-provided number went unanswered. We have also tried to get a comment on twitter and via email.
Josh Garza has been a lightning rod for negative press and accusations for over a year, with the introduction of Paycoin to much publicity. It was to be guaranteed at $20 per coin by Paybase, but this did not stop Paycoin's nosedive in the market, and or Paybase from reneging on its promise. Paycoin currently trades at $0.647.
Garza has also been caught lying about having a burgeoning business relationship with Amazon to accept Paycoin in the future, most likely to bouy the market value. Amazon denies any knowledge of Paycoin or have any such relationship or business talks. Garza was almost banned from the North American Bitcoin Conference for being accused to be a scam artist. Recently, Coinfire also made public a cadre of issues about Garza and his companies.
Silicon Angle contributed to this story. Photo provided by satoshis.guru.
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Last modified (UTC): March 23, 2015 9:01 PM