Stripe Holds $6.5M in Festicket Funds Two Years After Collapse
Payment processor Stripe is currently holding approximately $6.5 million (£5 million) in Festicket sales funds, over two years after the company's collapse in 2022. This situation persists despite administrator requests for the funds' return following Festicket's acquisition by Lyte, which has also recently ceased operations.
Women at store checkout counter
Stripe maintains its position by citing:
- A lien and security interest over the funds for customer chargebacks
- Lack of visibility into potential creditor trust claims
- Some accounts being held under Ticket Arena Limited
Key financial details:
- Current held amount: ~£6 million (across multiple currencies)
- Original held amount in 2022: £7.6 million
- Total unsecured creditor claims: ~$30 million
- Event promoter claims: $23 million
Recent developments:
- A court ruled Festicket doesn't hold money in trust for ticketing agencies and promoters
- Administrators can now pursue creditor distributions
- $5 million in contracts with AEG Presents Limited and other promoters under German law remain subject to potential trust claims
- Customer chargeback processing has largely ceased
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