Absolute Poker and UB Suspend US Player Deposits and Cashouts

The Cereus Network, consisting of Absolute Poker and UB, have suspended deposits, cashouts and transfers.  When a U.S. player goes to the cashier on either site and tries to deposit, cashout or do a player to player transfer this error is received:

“We have suspended deposits, withdrawals and transfers because of recent legal action taken by the US.  We apologize for the inconvenience this causes you.  We will provide an update as soon as possible.”

Some have speculated that Absolute Poker and UB are insolvent.  They had a bitter battle with the past ownership over payments not being made from the sale of Ultimate Bet.  That is what caused the loss of the Ultimatebet.com domain name.  There was speculation that Absolute Poker and UB were not liquid enough to cover a run on the bank.  Cereus has told at least one VIP player that they are looking for new processors and will be back online soon.  I cannot see how a processor is needed to receive cash transfers via Moneygram or Western Union though.  I would also think that their UseMyWallet option would be unaffected as well.  Only time will tell what the story is there.

Not surprisingly this has devastated traffic.  According to PokerScout on Saturday Cereus was down 21% against the previous Saturday.  Sunday’s traffic is down 39% against last Sunday’s peak although the peak time is a few hours from now on a Sunday.

I would have to imagine game quality is very poor as well.  Since losing players cannot deposit only break even and winning players are left.  Eventually the rake will take all of the money off of the tables.  Right now the highest fixed limit game is a 2/4 Texas Holdem game.  The highest no limit game that is full is a 2/4 No Limit Texas Holdem game.  You have to go down to $.25/$.50 no limit to find a full ring game and multiple tables running.  There are also a handful of non holdem games such as a 6 max 1/2 PLO and a 1/2 Stud8.

If you are outside the U.S. I strongly advise staying away from Cereus now more than ever.  I have a feeling there will be a collapse coming very soon.  With all of the liquidity issues they have combined with possible processing seizures and a potential run on the bank there may not be a worse place to play right now.

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