LyoPay

Key Points

• Special Administration: On February 10, 2025, Nvayo Limited, LYOPAY’s service provider, was placed into Special Administration by the High Court of Justice in England and Wales, raising concerns about customer funds and operational continuity.

• Regulatory Warnings: New Zealand’s Financial Markets Authority (FMA) flagged LYOPAY in 2023 for offering unregistered cryptocurrency services, suspecting potential Ponzi or pyramid scheme activities linked to WEWE Global (The Blockchain Era).

• Customer Complaints: Users reported issues with account verification, blocked assets, and inconsistent customer support, though some praised the platform’s functionality and low fees.

• LYO Credit Transition: The LYO Credit (LYO) token was delisted in December 2023, with users required to swap it for a new token by April 2024, creating confusion and potential financial loss for token holders.

• Trust Issues: Scamadviser rated LYOPAY’s website (lyopay.com) with an extremely low trust score, citing suspicious server activity and registrar practices, though user reviews on Trustpilot average 4.2 stars.

Overview

LYOPAY is a cryptocurrency services platform launched in 2020, designed to integrate digital assets into daily financial transactions. It offers a mobile app and web platform providing cryptocurrency wallets, exchanges, payment gateways, and virtual banking services, including SEPA transfers and Turbo Swap for instant currency conversions. LYOPAY’s vision is to make cryptocurrencies a primary form of money, with tools like LYOWALLET, LYOTRADE, and LYOMERCHANT facilitating crypto payments for e-commerce, travel, and everyday services. The platform operates under anti-money laundering (AML) and know-your-customer (KYC) compliance frameworks, primarily through Nvayo Limited, a UK-based service provider. LYOPAY’s ecosystem includes LYO Credit (LYO), its native token, though this was phased out in 2023. The company claims to prioritize user security and regulatory compliance but has faced significant scrutiny for its operations and associations.

Allegations and Concerns

• Unregulated Operations: In 2023, New Zealand’s FMA warned that LYOPAY and WEWE Global (The Blockchain Era) were offering crypto products without registration under the Financial Service Providers Act, potentially operating Ponzi or pyramid schemes. The FMA advised caution, noting LYOPAY’s lack of regulatory oversight in New Zealand.

• Special Administration of Nvayo Limited: On February 10, 2025, Nvayo Limited entered Special Administration, with administrators appointed to secure assets and return customer funds. This development suggests financial or operational distress, raising concerns about the safety of user funds held on the platform.

• Scam Allegations: Scamadviser assigned lyopay.com an extremely low trust score, citing multiple websites with low trust scores hosted on the same server and the use of registrar facilities associated with dubious platforms. This suggests potential scam risks, though no definitive evidence of fraud was provided.

• Token Delisting Issues: The delisting of LYO/USDT trading pairs in December 2023 and the requirement to manually swap LYO tokens for a new asset created logistical challenges for users, with some reporting difficulties accessing their assets or completing the swap process.

• Customer Access Problems: Users reported issues with account verification (KYC), blocked accounts, and inability to access funds, with complaints about inconsistent support responses. One Trustpilot review stated, “There are a lot of people that can not get even to cold verification, it’s actually a joke.”

Customer Feedback

• Positive Feedback:

  • Trustpilot reviews give LYOPAY a 4.2-star rating based on 227 reviews, with users praising its versatility, low fees, and ease of use. One reviewer noted, “Es la única empresa que he visto con la legalidad y cumplimiento 100% en regla,” suggesting confidence in its compliance.

  • Customers appreciated features like SEPA transfers and Turbo Swap, with one stating, “Hassle-free money transfers using your unique IBAN” and “quick and affordable conversions.”

• Negative Feedback:

  • Some users reported significant issues with account access and verification. A Trustpilot reviewer complained, “Account getting blocked and they can not touch there assets. Every time you try speak to support there someone different handling your case.”

  • Complaints about the LYO token swap process included confusion over manual conversions and phishing risks, with users warned to use only official links.

  • The Special Administration of Nvayo Limited prompted concerns on X, with one user posting, “LYOPAY users are left in the dark about their funds—another crypto platform biting the dust?” (paraphrased for brevity).post:unverified

Risk Considerations

• Financial Risk: The Special Administration of Nvayo Limited poses a high risk to customer funds, as the administrators’ ability to return assets is uncertain. Users may face delays or losses, especially if the company’s assets are insufficient.

• Reputational Risk: Regulatory warnings, scam allegations, and customer complaints have severely damaged LYOPAY’s reputation, potentially deterring new users and partners.

• Regulatory Risk: LYOPAY’s lack of registration in jurisdictions like New Zealand and potential non-compliance elsewhere could lead to fines, bans, or forced cessation of operations.

• Operational Risk: Technical issues with KYC verification, account access, and token swaps indicate operational weaknesses, which could worsen during the administration process.

• Security Risk: The low trust score from Scamadviser and warnings about phishing during the LYO token swap suggest vulnerabilities to cyberattacks or fraudulent activities.

Business Relations and Associations

• Nvayo Limited: LYOPAY’s primary service provider, now in Special Administration, handled exchange and e-wallet services. Its financial distress directly impacts LYOPAY’s operations.

• Fripro OÜ: A third-party service provider mentioned in LYOPAY’s terms for managing funds collection, though no further details were available.

• WEWE Global (The Blockchain Era): LYOPAY was linked to this entity in New Zealand’s FMA warning, raising concerns about shared promotional activities or business ties potentially tied to Ponzi schemes.

• Exchanges: LYOPAY’s LYO token was listed on platforms like LYOTRADE, HitBTC, Bibox, and Coinsbit, indicating partnerships with crypto exchanges, though these relationships may be disrupted by the token delisting.

• No Leadership Details: The sources did not provide specific information about LYOPAY’s executives or key personnel, limiting insight into its management structure.

Legal and Financial Concerns

• Special Administration: Nvayo Limited’s entry into Special Administration on February 10, 2025, is the most significant legal and financial concern, with administrators tasked to secure and return customer funds. The outcome remains uncertain, and users are directed to www.leonardcurtis.co.uk/case/nvayo for updates.

• Regulatory Non-Compliance: The FMA’s 2023 warning highlighted LYOPAY’s unregistered status in New Zealand, potentially violating the Financial Service Providers Act and Financial Markets Conduct Act. No fines or sanctions were reported, but further regulatory action is possible.

• No Lawsuits Reported: The sources did not mention active lawsuits against LYOPAY, but customer complaints about blocked assets could lead to legal action if unresolved.

• Financial Stability: As a non-custodial platform, LYOPAY claims not to hold user funds directly, but Nvayo Limited’s administration suggests financial instability in the ecosystem. No bankruptcy records were cited, but the administration process may reveal debts or liabilities.

• Token Delisting Costs: The LYO token delisting and swap process likely incurred costs for users, particularly those on non-LYOTRADE exchanges requiring manual conversions, with potential losses for those who missed the April 2024 deadline.

Risk Assessment Table

Expert Opinion

LYOPAY aimed to bridge cryptocurrency and traditional finance with an ambitious ecosystem, but its operational and regulatory challenges cast significant doubt on its reliability. The Special Administration of Nvayo Limited is a critical red flag, suggesting financial distress that could jeopardize user funds. The FMA’s warning about potential Ponzi or pyramid scheme ties to WEWE Global further undermines trust, especially given LYOPAY’s unregistered status in New Zealand. While some users praise the platform’s functionality, persistent issues with KYC verification, blocked accounts, and the LYO token transition indicate operational inefficiencies and poor user experience. The low trust score from Scamadviser, combined with suspicious server activity, warrants skepticism about the platform’s security.

Pros:

• Versatile app with crypto wallet, exchange, and SEPA transfer features.

• Positive user reviews highlight low fees and compliance efforts.

• Non-custodial model reduces direct liability for user funds.

Cons:

• Nvayo Limited’s Special Administration creates uncertainty about fund recovery.

• Regulatory warnings and scam allegations damage credibility.

• Operational issues with KYC, account access, and token swaps frustrate users.

• Low trust score and phishing risks suggest security vulnerabilities.

Cautionary Advice: Potential users and investors should avoid engaging with LYOPAY until the Special Administration process clarifies the status of customer funds and the platform’s future. Existing users should monitor updates from Leonard Curtis (www.leonardcurtis.co.uk/case/nvayo) and secure their assets by downloading transaction statements and avoiding phishing scams. Given the regulatory and scam concerns, alternative crypto platforms with stronger regulatory compliance and higher trust ratings should be considered. Always verify KYC processes and platform legitimacy before depositing funds.

Key Citations

• New Zealand Financial Markets Authority: “Suspected Ponzi and pyramid scheme WEWE Global or The Blockchain Era promoting LYOPAY” (November 13, 2023).

• LYOPAY Pro: “Nvayo Limited placed into Special Administration” (February 10, 2025).

• Scamadviser: “lyopay.com Reviews” (Last updated May 20, 2024).

• Trustpilot: “LYOPAY App by LYOPAY Reviews” (December 30, 2022).

• LYOCREDIT: “LYO Credit token delisting and swap process” (2023).