Bankoff platform, which issues virtual cards that can be recharged with cryptocurrency, informed customers that Visa and Stripe payment systems stopped supporting its products on May 3.
Denial of service is explained by the abundance of transactions by Russian users.
This means that our cards are no longer supported for any offline and online payments – clarified the team Bankoff.
Neobank also reported that the organization’s funds in the account in the United States have been frozen, while assuring customers that they are currently working to restore access to the money.
Bankoff representatives confirmed that users who had stored cryptocurrency in their accounts could not withdraw their assets.
The service grew in popularity in early March, when Visa and Mastercard suspended transactions by Russians outside the country. Restrictive measures were also imposed by global payment and money transfer providers Western Union, Paypal, Wise, Remitly, Transfergo, Zepz, Wirex and Revolut.
Against the backdrop of sanctions, the country’s residents abandoned the registration of virtual Bankoff cards, which made it possible to make payments across borders. The cards could be reloaded with stabelcoins (USDT) and added to major e-wallets, such as Apple Pay, Google Pay, Samsung Pay and Alipay.
However, the termination of the Bankoff service could be considered an exit scam, as more than $1,000,000 in USDT was withdrawn from their cryptocurrency wallet, probably by the founders themselves, in the days before the termination.