SpankPay crypto payment service shutters, citing 'hostile banking environment

Ethereum-based adult entertainment platform SpankChain is shuttering its crypto payment processor, SpankPay, after losing its payment service provider Wyre in February and failing to find a new one. 

In February, SpankPay revealed that its previous provider — crypto payment platform Wyre — had terminated its agreement to provide payment services to SpankPay, referring to "violations of any third-party payment processor or network rules."

After a long and difficult consideration, we have decided to close down SpankPay, our crypto payment processor that we built as a safe haven for our community. Rest assured your money is safe and we’ll get it to you as soon as possible.

In a March 20 post, SpankPay said this was a “targeted shutdown” by Wyre because their new payment processor “doesn’t work with the adult business.”

“This came as a shock, seeing as our relationship with Wyre had been supportive and respectful up until this point,” it wrote.

SpankPay says since then, all attempts to find another service provided resulted in rejection due to it "being in the adult industry."

Other service providers that we explored also rejected us due to being in the adult industry. Operating SpankPay in a hostile banking environment has always been challenging, but the escalating attacks have become untenable for our small team and the niche market we serve.

"Operating SpankPay in a hostile banking environment has always been challenging, but the escalating attacks have become untenable for our small team and the niche market we serve," SpankPay wrote in a Twitter thread.

SpankChain is an Ethereum-based blockchain aimed at helping adult content creators cut out third-party intermediaries such as traditional banks — which have had a long history of conflict with the adult industry.

SpankChain launched SpankPay in July 2019 as one of the means to realize that goal. The adult-industry-friendly payment solution assisted adult entertainers and merchants in accepting cryptocurrency for their services.

Related: Blockchain technology can help create safe and inclusive adult platforms

Despite the shutdown, the company assured users, "your money is safe and we'll get it to you as soon as possible."

“We encourage users to create crypto wallets and explore personal financial sovereignty. We’ll continue to develop and invest in products that advance the adult industry,” it added.

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