Bankoff’s Official Announcement of Ceasing Operations
Bankoff was a platform that allowed users to issue virtual cards, which they could top up with cryptocurrencies, particularly the stablecoin USDT. This service was particularly useful for Russian users who could continue making purchases abroad, even though they were cut off from the global financial system. The announcement that the platform would cease operations, delivered through an email, took many by surprise. In the email, Bankoff attributed the discontinuation of virtual card support to VISA and Stripe. The company stated that the cards would no longer work for any online or offline transactions.
Bankoff claimed that the surge in active users and transactions originating from Russia led to the withdrawal of support for its virtual cards. CryptoChipy suggests that UnionPay may have also played a role in processing deposits for Russian citizens. Furthermore, Bankoff mentioned that its funds held in a U.S.-based account had been frozen but reassured users that they were working to restore access to those funds.
Users Express Concerns Over Possible Scam
Several users on online forums have speculated that Bankoff may have defrauded them by taking their funds. There is no concrete evidence to support the claim that Bankoff received any official communication from VISA or Stripe regarding the withdrawal of support for its virtual cards. Moreover, the crypto wallets associated with Bankoff became empty shortly before the announcement was made.
However, some users disagree with the scam theory, arguing that the company was simply following protocol by converting the USDT from users into fiat currency and transferring it to the virtual cards. These users believe that the conversion was conducted through major exchanges, including FX and Binance.
Users sent their USDT to two specific addresses, on the Tron blockchain and the Binance Smart Chain. Since its inception in August 2020, Bankoff received a total of $6.12 million in USDT. However, this balance has drastically reduced, with less than $800 remaining. The Binance Smart Chain address associated with Bankoff has sent large sums of USDT to FTX deposit addresses. At least $2.47 million in USDT passed through Bankoff’s BSC wallet, and it currently holds less than $700 USDT. The wallet’s contents have decreased significantly, heading towards emptiness.
Background of Bankoff
Bankoff was founded in August 2020 and gained popularity during the Russia-Ukraine conflict in the spring. It became especially well-known among Russian users after the country faced international sanctions. The platform provided a crucial service for Russian citizens, both within Russia and abroad, after they lost access to VISA and Mastercard services. This disruption had a significant effect on their ability to purchase goods and services, such as software licenses and travel bookings.
Bankoff’s offerings were a welcome alternative, especially its virtual debit cards. The company surpassed 10,000 users just two months ago. The registration process was straightforward; users signed up via a bot on popular social media apps like WhatsApp, Telegram, Instagram, or Facebook Messenger. Once registered, users could top up their virtual cards by sending USDT to Bankoff’s addresses on the Binance Smart Chain or Tron blockchain.
The company also provided information to users on how to purchase USDT on the Binance peer-to-peer marketplace and send it to Bankoff’s wallet. It became well known within Russian circles that Bankoff had an account with Wells Fargo, evidenced by the SWIFT codes used for international transfers, which were discussed in Telegram group chats where users shared their experiences.
CryptoChipy Ltd confirmed that Bankoff did not hold any particular license to operate or provide such financial services. It was only registered as a company in Delaware in April 2021.
Looking for an alternative to Bankoff? One popular option for virtual debit cards is Crypto.com (see review), although its cashback offerings have decreased. Consider giving Crypto.com a try today!
