Patreon, a subscription-based platform that connects content creators with their supporters, said that it has identified an issue with its Payoneer payouts system and has temporarily disabled payouts to creators.
According to Patreon’s X account (formerly Twitter), the issue was identified Aug. 2. The company said it would provide an update on Thursday by 10 a.m. Pacific time (1 p.m. ET).
Crypto developers monitor payments glitches on major platforms partly because a key premise of the blockchain industry is to build infrastructure that improves on the current options.
“An unrelated issue is causing a slightly higher-than-normal number of patron payments to be erroneously flagged as fraudulent by their banks,” according to the Patreon Status account on X. “We’re sorry for the inconvenience this may cause creators and their patrons. We are working diligently with our partners to resolve this.”
Members of Patreon started to notice that the payments system had failed on Wednesday, and users on Nitter, an open-source alternative to Twitter, and Reddit shared that they were experiencing failures.
“Hey, if you're a Patreon creator and are confused as to why a bunch of your income vanished, it's because Patreon's system appears to have totally collapsed,” a user by the name of @JasonKPargin shared over Nitter.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.