On Monday, a United Kingdom High Court judge granted Syscoin’s final injunction against Moopay LTD (more commonly known as Moolah) and former CEO Ryan Kennedy (also known as Alex Green). The injunction included a provision ordering Kennedy to repay the 750 bitcoins Syscoin had deposited in Moolah’s escrow service. The Syscoin price rose 17% following the announcement.
Syscoin Price Rises After Judge Orders Moolah to Return Bitcoins
When the news first broke that Moolah had effectively shut down without repaying Syscoin’s 750 bitcoins, some investors panicked. They feared the money was lost forever and that Syscoin was affiliated with Moolah (since Moolah had managed the Syscoin presale). Some people even feared that without the escrow fund Syscoin would be unable to continue operations.
However, Syscoin has been able to assuage those concerns. Syscoin placed disclaimers in their BitcoinTalk thread clarifying they are not affiliated with Moolah, and the project will continue regardless of the legal outcome. Moreover, although Ryan Kennedy has yet to return Syscoin’s escrow fund and the 750 bitcoins ( ~$265,000 at current exchange rates) it contains, the UK legal system seems to be working in Syscoin’s favor.
The Syscoin price has responded positively to these events. On October 21–several days after the Moolah saga erupted, the Syscoin price was 109 satoshis. The price had been in decline for a while, but the uncertainty surrounding Syscoin’s future had not helped things. But the price began trending upward on the 21st. By October 23, the Syscoin price had rebounded to 228 satoshis. The Syscoin price dipped the next day but returned to 227 satoshis on October 25. The Syscoin price took a rather steep decline on October 26–falling to 174 satoshis–but has climbed since then. At press time, the Syscoin price was 193 satoshis–a 17% daily increase and a weekly rise of 77%.
Although it began before the Moolah sandal, part of the recent Syscoin price decline should be attributed to investor uncertainty about the state of Syscoin’s 750-bitcoin escrow fund. As events have moved in a positive direction, the Syscoin price has moved positively as well.
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Disclosure: The author is paid in and holds investments in bitcoin. He is not invested in or affiliated with any of the altcoins discussed in this article. Any advice contained in this article is solely the opinion of the author and does not reflect the views of CCN. Neither the author nor CCN is liable for your investing decisions, so do your homework and never invest more than you are willing to lose.
Images from Syscoin and Shutterstock.