FantasyDraft Bails Out Fantasy Aces, Will Pay Player Balances

FantasyDraft Bails Out Fantasy Aces, Will Pay Player Balances

FantasyDraft will rescue the consumer balances associated with the stricken and bankrupt Fantasy Aces site, its CEO announced on Monday in the RotoGrinders DFS forum.

FantasyDraft CEO Steve Krombolz said his company is stepping in so that they can save the ‘lifeblood associated with industry.’ The vast majority of Fantasy Aces clients will be paid in cash, while bigger balances will be topped up with FantasyCash.

FantasyDraft was on the verge of acquiring the site month that is last it pulled out of the deal citing ‘issues identified during our homework.’ It in fact was a move that quickly propelled Fantasy Aces towards chapter 5 bankruptcy.

Bankruptcy filings quickly revealed the messy truth behind Fantasy Aces’ situation: the business had failed to segregate player funds from the operational costs and owed its customers $1.3 million.

An account placed in the filings as ‘Players Account’ included just $2,419. Even though the business listed assets of $1.8 million, which will be liquidated to pay creditors, in addition said it had liabilities of $2.96 million.

In brief, Fantasy Aces could not pay its customers.

99.6 Percent to Receive Cash

‘As members associated with DFS community committed to doing things in the correct manner, we feel you, the players,’ wrote Steve Krombolz, CEO and Co-Founder of FantasyDraft that we need to do our part to protect the lifeblood of the industry.

‘So, we’ve decided to get involve [Read more…]