UAB PayrNet, as an e-money institution licensed by the Bank of Lithuania (‘BoL’), was the entity responsible for safeguarding the funds kept in its customers wallets. MuchBetter was an intermediary of UAB PayrNet, therefore your wallet was kept with UAB PayrNet and so were your funds. MuchBetter did not (and legally could not) safeguard your funds and it was up to UAB PayrNet to settle with you.

MuchBetter tried its absolute best to get you access back to your funds. For this, MuchBetter explored two avenues:

First, MuchBetter applied to the Bank of Lithuania (the supervisory authority of UAB PayrNet) to ask it to instruct UAB PayrNet to release your funds to you or to allow MuchBetter to reimburse you using its own funds. The responses delivered a clear message – UAB PayrNet is solely responsible for settling with the customers onboarded and serviced via MuchBetter.

Second, MuchBetter tried to communicate directly with UAB PayrNet via various channels and people within the organisation. UAB PayrNet refused to address the situation, staying mostly silent, save for several vague responses.

On 22 June 2023, the BoL announced it had decided to revoke UAB PayrNet’s licence and to initiate bankruptcy proceedings due to severe and continuous regulatory breaches by UAB PayrNet. These included failures in anti-money laundering, reporting, safeguarding customers’ funds, sanctions enforcement, and other requirements. The BoL also announced that due to the revocation of its licence, UAB PayrNet had to settle with all its customers by 22 August 2023.

Whilst the BoL’s statement should have given some comfort, UAB PayrNet failed to settle with its customers by the 22 August deadline.

To help ease customers’ worries and as a thank you for their continued support and patience over the past few months, MuchBetter has chosen to settle the outstanding PayrNet balances of its European customers using their own funds through their new European partner.

MuchBetter understands that this has been a lengthy process and chose to settle using their own company funds as they felt that customers have waited long enough and wanted to ease customers’ minds as the matter was not resolved directly with PayrNet by the 22 August deadline. The move showcases the financial strength of MuchBetter while also demonstrating that they are fully invested into their return to the European market and the customers which they continue to service.

This means that, once customers have accepted updated terms of service and agreements, MuchBetter customers in Europe will not only have access to their accounts again, but they will also be able to utilise the money they had in their accounts before activity was paused in mid-February. More regulatory steps are required in some European countries so while most customers have received their funds, customers in a few countries will have to wait a little longer.