WhatIsTheEMatrix.com

[MatrixWatch]

I did not realize that this site had stopped until recently. They have been formally closed since, it seems, the fourth of August. Here is the message from their site:

From: http://www.what-is-the-ematrix.com/pages/1/index.htm
Welcome to What Is The Ematrix?
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News Update (8/4/03)

Dear valued customers,

We apologize for the problems we are having with our merchant account provider Ginix, Inc. Due to legal problems Ginix has frozen all accounts of "matrix" type companies that it does business with. Unfortunately we fall under that umbrella and they have frozen our account including general access even though we have done nothing wrong. We currently can't access our transaction history or any other part of our account. We are not be able to pay out any completed cycles or give refunds since we have not received payments from Ginix. In the meantime if you want a refund please contact your credit card company and get it through them directly.

The following is a letter we received from Ginix concerning this issue. We will update this when we hear back from Ginix. Again, we sincerely apologize for the inconvenience.

What Is The Ematrix?

--- support@ginix.com wrote:

To : Matrix Organizations affiliated with Ginix

From : Ginix, Inc.

Ginix regrets to inform you that effective June 24, 2003, we will no longer be able to process your transactions.

A lawsuit has been filed in California against one of Ginix.$B!G.(B merchants, Ginix and certain other defendants alleging that matrix constitutes illegal lottery and/or gambling under California law. The lawsuit seeks, among other relief, restitution or disgorgement of all amounts paid by consumers. Ginix denies any wrongdoing on its part.

We are informed by plaintiff.$B!G.(Bs counsel in that lawsuit that the complaint is being amended to seek restitution or disgorgement of all amounts collected by Ginix on behalf of other merchants allegedly involved in matrix operations. Your business may potentially operate within or possess affiliation with the matrix concept.

Under the circumstances, at least until we have examined the allegations of the amended lawsuit, we believe we have no choice but to hold all the transaction amounts collected by us on your behalf.

We sincerely regret any inconvenience this may have caused you.

Sincerely,

Ginix Incorporated

[concerned]

I like how they say "Due to legal problems Ginix has frozen all accounts of "matrix" type companies." They should say, "due to the illegal nature of matrix sites we are closing." I like how they put the blame on Ginix as to the legal troubles, as if it was Ginix that was conducting ILLEGAL business practices. Funny how they try to spin it as someone else's fault.

[MatrixWatch]

Originally posted by concerned
I like how they say "Due to legal problems Ginix has frozen all accounts of "matrix" type companies."...

Actually, while there is a spin on the wording here, it is a warranted spin. Ginix, the matrix sites, and everyone else who has been sued is innocent until proven guilty. We know that the State of California and other states have laws against illegal lotteries and pyramid schemes, and that these laws also state that these schemes may also operate under other names (i.e. Matrix), but it has yet to be proven whether the actions of matrix sites constitue an illegal lottery.

I personally believe that the pay companies will bear the heaviest burden if my lawsuit is successful. If the pay companies would have refused service to the matrix sites, then the matrix sites would not have been as successful. They would have to be run by money orders, and the whole idea of "get on the list--QUICK" would evaporate because placement would be based upon when your money order arrived. And what if there is a whole stack of money orders in the mailbox?