BitGold and BullionVault: The Backlash

On the 27th May, GoldMoney was taken over by BitGold, a company that allows customers to exchange BitCoins for gold. Following this, BullionVault, one of the largest bullion dealers in the UK, commented on the takeover in not-so-favourable words. The comments were expressed in an article that was written by the CEO of BullionVault, Paul Tustain.

Of course, BitGold didn’t react well to these comments and seemed rather taken aback by them. The controlling shareholders of the company, Roy Sebag & Josh Crumb, wrote an article that expressed how they were “disappointed with Paul Tustain” and how they have always “pointed to BullionVault as a leader, even though [BitGold] offer a far superior service”. The article that these two shareholders penned didn’t display much of the anger that you know they were feeling, but as the above comment shows, there were equal levels of disappointment and backhandedness.

The main focus of the Tustain article was on how BullionVault is audited every year and how they operate a very transparent business, whilst, according to Mr. Tustain, “GoldMoney never [was].” GoldMoneys’ results were published by BitGold following the sale of the company and in the words of Mr. Tustain himself, these made for “scary reading.”

In that sense he is definitely right. The figures showed that GoldMoney’s profits had taken a nosedive. In 2014 alone they lost close to £10 million. It’s total assets also plummeted and throughout 2015 it has still been posting losses ou se procurer viagra.

Whilst BullionVault focused on the losses made by GoldMoney and the decision made by BitGold to buy them, BitGold themselves fought back by wondering just why, “the FCA or the Money Service Business regulators in the UK have not approached BullionVault requiring it to register as an E-Wallet or Money Service Business given the size and amount of customer holdings.” That was definitely another backhanded response as BullionVault have been able to survive as an unregulated business and should not be punished for that, even if BitGold feel that others should have to jump through the same hoops as they did, because, as they put it, “we spent nearly a year in an open dialogue with Canadian regulators”.

This was tit-for-tat in every sense of the word and neither companies came out of it looking good or professional. There are a lot of competing companies in this industry. That applies to all industries worldwide, but competition should always be clean and above board, because when you begin to throw dirt at each other then even if none of it sticks on you, you still come out of the exchange with dirt on your hands. Of course, everyone is entitled to their own opinions and they are welcome to express those opinions on their own sites, but save it for the journalists and the tabloids, save it for personal blogs.

This exchange did allow BitGold to clarify a few points that are worth noting though, namely that “GoldMoney and BitGold are debt-free”. In truth, Roy Sebag & Josh Crumb were unable to hide their anger and this didn’t come across well for them. They might have still been able to leave the exchange with their reputation in tact and in a professional manner, but then they quoted Peter Tosh, who said, “If you live in a glass house, don’t throw stones”. If that wasn’t bad enough, they
finished with a quote that was sure to make the vast majority of readers cringe and shake their heads: “Haters gonna hate” – Taylor Swift.