By Ian Hiaring, Rakeback.com Poker News Staff Writer
On Tuesday, Nathan Vardi from Forbes.com released a statement from Full Tilt Poker that offers insight to the company’s inability to pay back players wishing to cash out their balances.
It’s unclear if the statement was only released by Vardi, or if it is a part of an official press release from Full Tilt Poker.
The statement doesn’t contain anything earth-shattering as far as new information is concerned. Full Tilt says its inability to cash out is due to a $42 million theft by a third-party payment processor coupled with the poor timing of Black Friday.
In a nutshell, Full Tilt Poker claims to be working furiously to correct the problem. With such a cash-cow brand image, it would behoove Full Tilt to continue operations, but with a mountain of financial and legal problems in front of them, players can only hope and pray for a speedy return of the largest rakeback room in the world.
Exacerbating the problem is the attack on personal freedoms via the U.S. government beginning April 15th which clearly took Full Tilt Poker (and most of the world) by surprise.
Here’s the statement in full.
The events of Black Friday came on the heels of prior government enforcement activities and significant theft. Over the two years preceding Black Friday, the US government seized approximately $115M of player funds located in U.S. banks. While we believed that offering peer-to-peer online poker did not violate any federal laws—a belief supported by many solid and well-reasoned legal opinions — the DOJ took a different view. In addition, as was widely reported, a key payment processor stole approximately $42M from Full Tilt Poker. Until April 15th, Full Tilt Poker had always covered these losses so that no player was ever affected. Finally, during late 2010 and early 2011, Full Tilt Poker experienced unprecedented issues with some of its third-party processors that greatly contributed to its financial problems. While the company was on its way to addressing the problems caused by these processors, Full Tilt Poker never anticipated that the DOJ would proceed as it did by seizing our global domain name and shutting down the site worldwide.
Over the last four months, Full Tilt Poker has been actively exploring opportunities with outside investors in order to stabilize the company and pay back our players. At least six of those groups, including hedge funds, operators of other internet businesses and individual investors, have visited Dublin to inspect the operation. We have recently engaged an additional financial advisor through an investment banking group to assist us in our search for an infusion of cash as well as a new management team to restore the site and repay players. While any deal of this nature is necessarily complex given the current regulatory environment, our players should know that Full Tilt Poker is fully committed to paying them back in full and restoring confidence in our operations.
Up to 30% Rakeback + €1000 Bonus
Up to 70% Rakeback + None Bonus
Up to 22.2% VIP Rakeback + $500 Bonus
Up to 30% VIP Rakeback + $600 Bonus
Up to 30% Rakeback + $1000 Bonus
Up to 27% Rakeback + $1000 Bonus