UsePaid suspends X Money payments after volume spike
Solana-based DeFi protocol UsePaid, which uses X’s integrated digital banking service X Money to share token creator fees with users, has paused payments after experiencing “issues” following a spike in volume.
UsePaid noted, “Existing balances remain safe and fees will continue to accrue.”
It claimed that it was working on a solution, and that in the meantime there will be a temporary claims web portal for users to access.
UsePaid was unclear as to why it had to pause X Money payments and didn’t expand upon the “payment issues” it suffered.
Read more: X Money can’t pay New Yorkers interest, gives them a $300 ‘bonus’ instead
UsePaid deposits failed to credit
Twenty four hours earlier, UsePaid revealed that Automated Clearing House (ACH) deposits were failing to credit.
Because of this, it said it would have to cap payouts at $750 per person until ACH deposits land on September 28.
Prior to this announcement, UsePaid had just experienced a volume spike of $1.54 million in 24 hours, a 26x increase from previous records.
Users ‘DDOSd’ with UsePaid funds
UsePaid’s X account was created in August and started posting in September. It allows users to redirect creator fees earned from token launches on Pump Fun to users on X via its X Money payments system.
In one instance, over $6,000 was sent to crypto influencer Tiffany Fong. Another X user described the almost $33,000 they received from UsePaid payments as being “DDOSd with money.”
Read more: One day after launching stock pairs, Apple delists Pump Fun app
X Money itself launched on July 27 for US-based X users subscribed to the app’s Premium and Premium+ subscriptions.
X’s payment service ran into interest issues earlier this month when the New York Department of Financial Services told the firm it can’t pay bank account-like interest on non-bank account deposits of New York residents.
It then offered short-term compensation of $300 to New Yorkers to avoid capital flight risk. It said the payment “does not constitute APY or interest.”
Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on X, Bluesky, and Google News, or subscribe to our YouTube channel.