Ethereum-based SpankPay is shutting down its crypto payment service

SpankPay, a crypto payment tool for adult entertainment ecosystem SpankChain, has announced it is shutting down.

The payment processor and wallet alleged that it was a targeted shutdown of Wyre because of SpankPay’s industry.

Failure to Secure Other Service Providers

SpankPay stated in a Twitter announcement that Wyre’s new payment processor does not support its adult entertainment business. In addition, the platform also mentioned that other service providers rejected SpankPay for the same reason.

The platform noted: “Operating SpankPay in a hostile banking environment has always been challenging, but the escalating attacks have become unsustainable for our small team and the niche market we serve.”

SpankPay partnered with Wyre as their payment provider and crypto custodian to honor all bank transfers made on SpankChain. SpankPay shared a contract termination letter from Wyre, saying, “This comes as a shock, as our relationship with Wyre had been supportive and respectful up until this point.”

Meanwhile, it assured users that the funds were safe and would be returned to their users.

SpankPay issues with Wyre

Adult content platform SpankChain is built on Ethereum. Through SpankPay, it powered cryptocurrency payments, enabling blockchain to do away with third-party intermediaries and unfair payment practices in the adult industry.

Back in January and February, the adult payments platform had shut down withdrawals on the back of account closures from Wyre. BeInCrypto cited reports earlier this year that claimed Wyre was going out of business. As a result, customers encountered withdrawal limits. Several companies, such as Juno and Ledger Support, confirmed payments with alternative partners amid the crisis.

Meanwhile, SpankPay is reportedly lobbying Congress to prevent banks from discriminating against adult companies and performers. It noted in the thread, “As SpankPay is discriminated against due to the nature of its business, we are as motivated as ever to end these extra-legal censorship practices enforced by financial institutions.”

According to Crunchbase, SpankChain secured $6 million in funding through an initial coin offering (ICO) in 2017.

Businesses fail because of greater weakness

SpankPay’s announcement is also accompanied by weakness in the broader markets. The failure of Silvergate, Silicon Valley Bank and Signature came as the sector began to recover from the demise of FTX, triggering a domino effect in mainstream finance.

But with the market capitalization of all cryptocurrencies hovering above $1 trillion in the past week, Bitcoin has registered gains. BTC is trading between $27,500 and $28,000 at press time.