FantasyDraft will rescue the client balances associated with the stricken and bankrupt Fantasy Aces web 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 the industry.’ The vast majority of Fantasy Aces customers will be paid in cash, while bigger balances will be topped up with FantasyCash.
FantasyDraft was on the verge of acquiring the website last month before it pulled out of the offer citing ‘issues identified during our homework.’ It was a move that quickly propelled Fantasy Aces towards chapter 5 bankruptcy.
Bankruptcy filings soon revealed the messy truth behind Fantasy Aces’ situation: the company had failed to segregate player funds from the operational costs and owed its customers $1.3 million.
An account listed in the filings as ‘Players Account’ included just $2,419. As the ongoing business listed assets of $1.8 million, that may be liquidated to pay creditors, it also stated it had liabilities of $2.96 million.
In short, Fantasy Aces could not pay its customers.
99.6 Percent to Receive Cash
‘As members of the DFS community committed to doing things the right way, 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 now have decided to have involved. Today, we have