Updated: Paypal freezes half of developer’s indiegogo campaign funds

Update: Following on from the emails and tweets sent out by fans of the game and those who feel injustice was done here, Paypal has released all Indiegogo funds to the developers. It also released 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.”

For a full rundown on the ongoing story, check out the new Kitguru article here.

Original Story: Yatagarasu Attack on Cataclysm is an indie fighting game being developed by three ex SNK / King of Fighters devs, who managed to net themselves over $118,000 on Indiegogo from fans in order to make it. However, now the future of the game is in jeopardy, as Paypal has frozen half of the company's funds, stating that it will only release them after the game is complete.

Of course this creates a massive problem for the developers, as not only do they need that money to make the game itself, but they need it to fulfil their rewards promised in the campaign.

“What's more, they provide no option to discuss, stating we should ‘contact us closer to the release date beginning of next year' to arrange release of the funds,” stated developer Seon King on the game's Indiegogo page. “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 goes on to explain that his company, Nyu Media has provided Paypal with documentation to prove its intentions are true in developing the game and that his team has a solid history of finishing developments.

Maybe Paypal doesn't see fighters as likely to be finished on time?

Despite this, Paypal is said to be worried that should the game not be completed, fans would demand refunds from Paypal. To avoid that it's frozen the developer's funds; but this isn't the first time. It did it before with games like Skullgirls. The developer of that 2D beat'em up, Reverge Labs, commented on its official Twitter: “@AskPaypal First us, now Yatagarasu? What do you guys have against fighting games?”

The worst part of this whole thing though, isn't Paypal's leg breaking, loan shark tactics, but the fact that so far the online transaction facilitator is refusing to discuss the case with the developers. Anyone that's called Paypal customer support knows how hard it is to get anywhere, but even in a situation like this not much is happening.

The developers have therefore asked their fans to get in touch with Paypal to attempt to shine a light on the situation and get it resolved. However, if no resolution can be found, Nyu Media is already discussing refunding all money to backers and seeking funding elsewhere.

The fans have responded well though, judging from the current twitter feed of Paypal mentions.  If you want to make your voice heard on this matter, contact @PayPalUK and @PayPal on Twitter, or get in touch via any of these methods here.

KitGuru Says: Pretty disgusting ass covering by Paypal here. It really is one of those services I wish it was easier to get away from, but it's so bloody convenient. 

[Cheers GamesIndustry]

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