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news Epik continues to dig out from financial mess

Catch.Club

NameInbox

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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.
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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/
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
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
 
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marijuanadomain

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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!
 
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branding

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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.
 
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VadimK

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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?
 
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Sam1234

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Hope they never dig their way out.
 
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NYJimbo

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Hilarious how they are doing this now on Trustpilot:
2022-12-05 13_04_42-Epik.com Reviews _ Read Customer Service Reviews of epik.com.png


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.
 
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NameInbox

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

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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.
 
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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
 
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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
 
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franka46

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

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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
 
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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.
 
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franka46

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franka46

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Chris Hydrick

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

*This service is not available to residents of Idaho, Texas and Washington.
 
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franka46

Top Member
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Happy Hanukkah!​

We are wishing you and yours peace and light this holiday season.​

 
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NameInbox

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ALL names away from Epik
as @D Haynes wrote
It's sounds like a motto.
ALL names away from Epik
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p.s. #beepik.com is for sale on HD =)
 
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Epik changed expiration renewal days out of the blue, those that had grace periods of 35+ days (extended by being Namepros members or other reasons) just got defaulted to 30 days without warning.
 
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frank-germany

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No.

This is what happens when you act as a "self-governing" escrow agent and thumb your nose at proper licensing and regulations.

Brian Royce already said that under Rob's leadership these funds were "commingled". That is a massive no-no in business.

People in professional fields like law, finance, real estate, etc. would lose their licenses or face even more serious consequences for these type of actions.

Brad

don't forget it's "the Lord's Registrar"
so help will come for sure

by the way
rob.monster is for sale
 
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branding

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Epik changed expiration renewal days out of the blue, those that had grace periods of 35+ days (extended by being Namepros members or other reasons) just got defaulted to 30 days without warning.


Got this by mail:
Epik has recently made a change to the grace renewal policy. As you are aware, Epik only gave a 15-day grace period. Well, we have listened and heard our customers. Our grace renewal period is now 30 days, which starts on the day of expiration. Please do note this 30-day grace period does not apply to all GLTDs/cctTLDs, so we encourage you to make sure you still log in and take note of the "renew by" date listed inside of your Epik account.

For those of you who might have had your grace renewal period altered in the past, your grace period is set to 30 days as well.

Epik is here to support all types of end-user or domain investors. We greatly appreciate your business. Have a wonderful week ahead.
 
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Yes, they sent that many hours after the change, I personally inquired how such a thing could happen without informing us. I still have an issue and I'm waiting for resolution.
 
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