FantasyDraft will rescue the customer balances of the stricken and bankrupt Fantasy Aces internet site, its CEO announced on Monday in the RotoGrinders DFS forum.
FantasyDraft CEO Steve Krombolz said their company is stepping in so that they can save the ‘lifeblood of this industry.’ The vast majority of Fantasy Aces customers will be paid in money, while larger balances will likely be topped up with FantasyCash.
FantasyDraft was in the verge of acquiring the website last month before it pulled out of the offer citing ‘issues identified during our due diligence.’ It was a move that quickly propelled Fantasy Aces towards chapter 5 bankruptcy.
Bankruptcy filings soon unveiled the messy truth behind Fantasy Aces’ situation: the company had unsuccessful to segregate player funds from the operational costs and owed its customers $1.3 million.
An account listed in the filings as ‘Players Account’ contained just $2,419. Although the ongoing company listed assets of $1.8 million, that will be liquidated to pay creditors, it stated it had liabilities of $2.96 million.
In short, Fantasy Aces could not pay its customers.
99.6 Percent to Get Cash
‘As members associated with DFS community committed to doing things the proper way, we feel we have to do our part to guard the lifeblood of this industry, you, the players,’ wrote Steve Krombolz, CEO and Co-Founder of FantasyDraft.
‘So, we now have decided to get involved. Today, w Continue reading