Originally Posted by RuthB

Paxum was not hacked by any Bitcoin user(s), and we have not encountered any fraudulent activity with Bitcoin and Bitcoin-related accounts.

The decision to terminate all Bitcoin associated accounts was made after much consideration and discussion, and this decision was made on Friday. This was not an overnight/impulsive choice. We had been in discussions with our banking partners, Mastercard and our auditors for the last couple of weeks, and on Friday our banking partners ended the discussions with us and stated that it was too much of a potential risk to continue doing business with Bitcoin and Bitcoin Exchangers and instructed us to close all Bitcoin-related accounts. We had no choice but to follow those instructions and therefore, all Bitcoin associations were severed on Friday.

It is easy to form 'conspiracy theories' from any circumstance and 'link' things together, however the plain truth of the matter is described above. Due to the confusion and wild speculation occurring on this forum, we thought it wise to clarify our decision.

We appreciate that so many of you care about our business, and we value your opinions of our service, however we must make decisions based, not on the popularity of the decision itself, but on wisdom and logic based on our business model and long-term goals.

As such, some of our decisions may be questioned or not be welcomed, but it is for the good of ALL our clients that we have ceased doing business with Bitcoin at this time.

Thanks again for your time.