PayPal has issued a statement to VG247 stating it and Nyu Media have resolved the issues surrounding the release of fund gained through the Indigogo campaign for Yatagarasu Attack on Cataclysm.
It was reported earlier today that PayPal had refused to release as much as 50% of the $120,000 raised on IndieGoGo until after the developers have finished completing the game.
Today, PayPal issued VG247 the following statement:
“We have reached out to Nyu Media and the issue has been resolved. We want to reiterate that supporting these campaigns is an exciting new part of our business. We are working closely with industry-leaders like IndieGoGo and adapting our processes and policies to better serve the innovative companies that are relying on PayPal and crowd funding campaigns to grow their businesses.
“We never want to get in the way of innovation, but as a global payments company we must ensure the payments flowing through our system around the world are in compliance with laws and regulations. We understand that the way in which we are complying to these rules can be frustrating in some cases and we’ve made significant changes in North America to adapt to the unique needs of crowd funding campaigns. We are currently working to roll these improvements out around the world.”
One of the game’s three designers, Seon King released the following statement before the issues were resolved:
“We appreciate irony as much as the next person, but PayPal refusing to provide funds legitimately raised to complete a game until after the game is released isn’t just beyond ridiculous – it potentially derails the game development”.
He went on to allege that the banking service was refusing to discuss the issue with Nyu Media, requesting that the devs “contact them closer to the release date next year” when they have some paid invoices for the game.
King said that his company’s track record is “rock solid” and that Nyu Media had already provided PayPal with all the “documents providing the bona fides of Nyu Media, the developer, and the campaign”.
This isn’t the first time PayPal have held up proceeds from IndieGoGo campaigns: Skullgirls developer Zero Lab Games was famously unable to pay staff while PayPal held up its funding.
Should the matter had not been resolved, Nyu Media planned to refund all PayPal contributions to the campaign and solicit those donations through another service, running the risk of not reaching the same funding target again, forcing the cancellation of stretch goals.
Original source: Kotaku.
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