news Epik continues to dig out from financial mess

[NameInbox]

Domain name registrar Epik continues to dig itself out of a financial hole, but new problems continue to pop up.

The registrar offers a type of store credit called Masterbucks along with an in-house escrow service. Epik was using money from both of these to fund its operations rather than keeping the funds in separate bank accounts. The company also didn’t have an escrow license.

It wasn’t apparent that the money was being used to fund operations (or otherwise unavailable) until customers became spooked that they wouldn’t be able to get their money back. That created what amounted to a run on the bank — and Epik didn’t have the funds to pay back all of its customers.
Epik brought in new management in September that is chipping away at these debts, but it doesn’t have the cash on hand to fund operations and make everyone whole today. It’s in triage mode, taking any new profits that come in and paying them out as available.

Recently, the company sent an email to some customers stating:

When new management took over Masterbucks, the balance was approximately 4.5 million dollars. Through our dedicated and expeditious efforts, the new management team has brought that number down to just over $800k and change.

But last week, a representative of domain seller DomainEmpire posted a review on TrustPilot saying it has a balance of $1.5 million in Masterbucks that it has not been able to withdraw. It accrued this money from domain sales, it stated.

According to DomainEmpire, former Epik CEO Rob Monster offered it 6% annual interest if it kept its money in Masterbucks.

I asked new CEO Brian Royce yesterday via email about DomainEmpire’s $1.5 million debt. He said the number was news to him. He also said that the $800k quoted in the email was no longer correct even without the DomainEmpire number, because he just became aware of another debt of over $300,000 that wasn’t in Masterbucks, bringing the total (without DomainEmpire) to $1.1 million.

It seems that there is no clear record-keeping for the new management, which adds to the challenge.

More details about the blowup at Epik this year are starting to trickle out. A former contract EVP of Operations for Epik sued the company this year, saying he has not been paid. The case was settled. In a court filing (pdf), an attorney for Epik wrote:

While working for Epik, the Plaintiff began working with one of Epik’s chief customers–JJE. JJE offered and invested into a plan for ownership in Epik. Within a few months, however, JJE changed its position and asked Epik if JJE could divest from their investment in Epik. As an agreement and negotiations between Epik and JJE progressed, JJE broke off from their original offer to Epik and negotiated for a settlement.

Monster had previously said the company received a $32 million investment. That investment didn’t fully come to fruition.


source: https://domainnamewire.com/2022/12/01/epik-continues-to-dig-out-from-financial-mess/

 

[franka46]

Brian is capable of being a competent domain registrar CEO - Yes
it seems like Brian paid you off, NO
now you're back on team epik NO ,
You can check my twitter page and see that i am now an affiliate for Dynadot
There is nothing more I know or can say .Im just hope for Epik's staff[not all] that he fixes the problems and the good people there have jobs to feed their families.
. I still have avout 700 domains there and selling them at $10 each ,so I can leave Epik after about 5 years of helping to make it a good registrar. Btw Im 76 yrs old and want to get out of domaining alltogether.
Chris you can always DM Brian on his linkedin account.

https://twitter.com/DomainFrank

 

[franka46]

I am not posting anything to do with Epik anymore .
I hope everything works out for everybody .
Remember ;
Rob is praying every day for all of you and even for his enemies LOL

 

[Grilled]

Brian is capable of being a competent domain registrar CEO - Yes
it seems like Brian paid you off, NO
now you're back on team epik NO ,
You can check my twitter page and see that i am now an affiliate for Dynadot
There is nothing more I know or can say .Im just hope for Epik's staff[not all] that he fixes the problems and the good people there have jobs to feed their families.
. I still have avout 700 domains there and selling them at $10 each ,so I can leave Epik after about 5 years of helping to make it a good registrar. Btw Im 76 yrs old and want to get out of domaining alltogether.
Chris you can always DM Brian on his linkedin account.

https://twitter.com/DomainFrank

IDK man, from unhinged frustration, to seemingly no qualms appears like a crock of shit to me....

Everybody who has a dynadot account has a refer a friend referal code. Seems odd that somebody wanting to get out of domaining is attempting to pick up a new domaining related revenue stream. I guess after years in the biz, completely leaving domains is out of the question. Anyways, thanks for chiming in @franka46 ... I hope you weren't bullied, manipulated, or intimidated into changing your tune.

 

[bmugford]

Just had a message from Brian . I think we have to give him some time get all the problems sorted out .
He just has to ''remove'' some dead wood,etc .
Also he is definately NOT a Rob Monster clone .

Just curious why the sudden change... Were you finally paid what you were due and that's why the sudden change, or did you learn anything that would suggest Brian is capable of being a competent domain registrar CEO? Not to question your integrity Frank, but without knowing more, it seems like Brian paid you off, and now you're back on team epik. I hope there's more to it than just one selling their soul.

The epik/masterbucks relationship is starting to sound a lot like the ftx/alemeda relationship. The way epiks trustPilot representative has been responding to epik escrow customers due hundreds of thousands of dollars is reprehensible.

The only public facing things Brian has done thus far since joining epik is (1) tweet elon musk (2) issue misleading statement about mastebucks balance (3) did a dnw interview where Brian admitted there was commingling of funds.... I hope Brians next move is something more meaningful, until then, I'm expecting (4) to be Brian tweeting Kanye in hopes of Kanye buying epik.

"Whatever it takes" apparently now means soliciting new escrow deals without mentioning to people that their funds then will be transferred to a "standalone" wreck-of-a-company of Masterbucks and won't be paid off until an indefinite date in the future, if ever.

Mr. Royce is playing games with the livelihood of people with the amounts that make difference for many between good life and being broke and he keeps bringing more and more people into this disastrous circle.

If few people come together, get lawyered up well, it is quite possible that people can go after personal assets of Mr. Royce and Mr. Monster, because what they are doing shouldn't and couldn't have normal ring-fenced protection of an LLC.

Quite an about-face there.

I can only judge Brian Royce from his actions, or lack of actions.

This problem goes back 3+ months now and Epik reportedly owes millions of dollars to customers.
They are unable to pay that amount, yet still are soliciting new business in the same field without mentioning that.

They are enabling sales that end up with the seller transferring their domain, and being stuck with Masterbucks that who knows when, or if, they will be available for withdrawal.

I expect the authorities to catch up with Epik eventually. They commingled customer funds with other funds, as an unlicensed escrow agent. That is a massive problem.

Customer funds are not their slush fund to do with as they please.

Brian has largely been radio silent, outside a few comments to domain blogs and some tweets kissing Elon's butt. My view is that he is incompetent as CEO, especially when it comes to communications. There is zero engagement with customers.

Brad

 

[NameInbox]

Trustpilot:

Show attachment 227881
LOL !

or even less =)

 

[MasterOfMyDomains]

Remove some dead wood. Is he doing some pruning?
I work in orchards and we prune dead wood a lot.
In opening post actually first sentence you were angry and sad. Sounds like your feeling a little less blue.
We hope you werent bullied or forced into this change of heart.
You dont look like the type to be intimidated, intimate yes, intimidated, no
You big hunk of love, share all the details

 

[marijuanadomain]

When an individual steals money, s/he goes to jail
When a company steals money from their employees( not giving back the tips)/customers, or the company products are defective and caused accidents(Boeing), the CEO blames their managers and admits not wrongdoing !
and the company gets a minor fine. and the CEO gets more money!

 

[dirk]

I hope you weren't bullied, manipulated, or intimidated into changing your tune.

They're not shy trying to silence people so who knows.

Try asking some critical stuff at thedeadforum.com and see what happens.

E has a rotten core.

 

[VadimK]

Guys, sorry, I may be missing something, but what is the purpose of this thread? Epik is talking to somebody (to others - not), paying to somebody (to others - not), doing something (or not). Like pretty much always for the past few months, no?

 

[Sam1234]

Hope they never dig their way out.

 

[NYJimbo]

Hilarious how they are doing this now on Trustpilot:

Blame the "other company", even though its really Epic's company thats hiding behind a company name in Wyoming.

"We paid out your funds, its Masterbucks fault if you don't get it."

Great scam.

 

[NameInbox]

and more here
https://www.trustpilot.com/review/epik.com

 

[domainer111]

Co-mingling funds? Lol no. No No No. What is so difficult about that. What precisely were customer funds used for?

 

[NYJimbo]

Co-mingling funds? Lol no. No No No. What is so difficult about that. What precisely were customer funds used for?

I wouldnt be surprised if they invested it in crypto and it all crashed.

 

[kool1]

Not trying to draw any sort of correlation here, but I'd never heard the term 'commingled funds' before this week.

1st instance: SBF in prison. https: //cointelegraph.com/news/bankman-fried-claims-i-unknowingly-commingled-funds-at-dealbook-summit

2nd instance: resolution pending

 

[bmugford]

Not trying to draw any sort of correlation here, but I'd never heard the term 'commingled funds' before this week.

1st instance: SBF in prison. https: //cointelegraph.com/news/bankman-fried-claims-i-unknowingly-commingled-funds-at-dealbook-summit

2nd instance: resolution pending

Commingling funds, especially when it leads to an inability to pay customer debts, is generally among the most egregious abuses a company can do.

This is especially true when the commingled funds were of an escrow type nature.

If you are in a professional field like real estate, law, finance, etc. you would lose your license for this kind of behavior and potentially face far more serious consequences.

Despite all of this, Epik is continuing to solicit new "escrow" business and sticking customers with Masterbucks that can't be withdrawn.

Brad

 

[franka46]

Ah ,Now we know ,Domainers are NOT important for Epik.com

 

[bmugford]

Ah ,Now we know ,Domainers are NOT important for Epik.com

Nice attitude.

That explains why they are still offering "escrow" services while sticking domain owners AKA suckers with Masterbucks that can't be withdrawn.

I am also pretty sure they are still not licensed to operate as an escrow agent in their home state of Washington.

Brad

 

[411domains]

Ah ,Now we know ,Domainers are NOT important for Epik.com

I'm fairly certain he's going to regret that reply.
I can't even believe he said that.

 

[franka46]

https://twitter.com/Brianmroyce