• MuchBetter, an electronic payment system, halted all services due to an investigation into money laundering.
• European customers report unsuccessful attempts at cashing out their funds through wire transfer and crypto withdrawals (BTC, LTC, XRP).
• The disruption of service is linked to the US Treasury Department’s sanctions on MIR cards owned by the Russian government.

MuchBetter Crypto Card Suspended

The award-winning crypto payment app MuchBetter has suspended all transactions due to an investigation into money laundering by its card issuer.

Customers Outraged as Withdrawals Bounce Back

European customers are reporting unsuccessful attempts at cashing out their funds through wire transfers and crypto withdrawals (BTC, LTC, XRP). All transfers to and from merchants worldwide have been disrupted along with top-ups for EEA customers. Cards, fobs and wearables are also suspended.

Investigation by Bank of Lithuania

The disruption of service coincides with the Central bank of Lithuania suspending Payrnet UAB services which is suspected of “severe and systematic violations of the Law on Prevention of Money Laundering and Terrorist Financing”. Additionally, UAB MIR Lithuania served Payrnet UAB as an intermediary for card payment services, both companies being targeted with similar violations.

Sanctions on MIR Cards by US Treasury Department

The US Treasury Department has threatened foreign banks with strict sanctions if they form business partnerships with providers of MIR Cards which are a state-subsidized payment system fully owned by the Russian government. These sanctions were put in place in 2022 after Russia invaded neighboring Ukraine. As a result, all credit and debit cards branded with the Russian payment giant logo have been rejected throughout the European economic area as well as other countries facing financial crises such as Venezuela, Belarus and Kyrgyzstan.

Conclusion

                                                                                                                                                                                                                                                                                                                                         MuchBetter’s suspension of service has left many customers outraged leaving them unable to cash out their funds from MuchBetter accounts trapping users‘ money on balance without any possible way of actually using it. The disruption is linked to US Treasury Department’s sanctions on MIR cards owned by the Russian government imposed following Russia’s invasion into neighboring Ukraine resulting in rejection or refusal of these cards globally.