Aug 31 2011
We finally have some news to report on Full Tilt Poker and would you believe an official statement? The statement offers some insight into money that Full Tilt lost before Black Friday on top of what we already knew about the payment processors. The statement offers very little in the way of an apology to players or even an acceptance of any blame, which is bound to raise the ire of many.
The statement comes on the back of two major news stories regarding Full Tilt earlier in the week. Subject Poker continued their excellent track record of reporting and uncovering the truth when they revealed that Full Tilt’s reported $60m shortfall was actually much larger than that. The big catalyst for the official statement from Full Tilt Poker though was Jeff Ifrah, a Full Tilt lawyer, announcing himself on 2+2 and fielding questions. He had a few insights to offer about the investor process, one of his major announcements though was that Full Tilt will be releasing regular statements and keeping players more informed. It’s only taken three and a half months, but will players finally be in the loop?
Official Statement from Full Tilt Poker 30th of August, 2011
As is obvious from the events that have transpired since April 15th, Full Tilt Poker was not prepared for the far-reaching, US government enforcement effort of Black Friday.
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.
What They Tweeted
AndrewWiggins Andrew Wiggins
What do ya know? Another statement from FTP that tells us nothing new nor does it tell us when or if we will be paid.
Full Tilt Poker Makes Its Case For Why It Has Been Unable to Pay Back Players - Forbes
FTP’s “$60M Shortfall” Actually Much Larger - Subject Poker