Bankruptcies

T1 Payments And Donald Kasdon: Post-Bankruptcy Fallout, Payvision, And The Unfinished High-Risk Payments Story

By Tom Morris - April 15, 2026 No comments 5 mins read

The latest developments surrounding U.S. high-risk payment processor T1 Payments and its founder, Donald Kasdon, reveal a story of ongoing legal consequences rather than a fresh start. Court records indicate that T1’s Chapter 7 bankruptcy was officially closed by June 10, 2025. Following this, merchant cases resumed, with one related lawsuit concluding with a default judgment against T1 on March 30, 2026. Despite the collapse, Kasdon remains entangled in the active litigation with New U Life in Nevada.

Key Findings:

T1 Payments’ Bankruptcy Closure: T1 Payments’ Chapter 7 bankruptcy was deemed closed by June 10, 2025, removing the bankruptcy stay and allowing civil litigation to resume.
Gaia Ethnobotanical v. T1 Payments: The stay was lifted in July 2025, and T1’s failure to respond led to a default judgment by February 2026.
Court Judgment in Favor of Plaintiffs: On March 30, 2026, a default judgment was entered against T1 Payments in favor of Vida Divina, LLC, and Gaia Ethnobotanical, LLC for non-compliance with court orders.
T1 Payments v. New U Life: Litigation involving Kasdon continues into 2026, with extended deadlines for summary judgment motions. A Nevada court also allowed amended civil theft and federal RICO claims to proceed in the New U Life case.
Dissolution of T1 Payments Limited: The UK entity T1 Payments Limited was dissolved by compulsory strike-off on June 6, 2023, further indicating the company’s structural unraveling.
Kasdon’s Public Profile: Despite the company’s collapse, Donald Kasdon maintains a visible presence in the payments industry, with recent articles published under his name.

The Post-Bankruptcy Report

The narrative now unfolding around T1 Payments and Kasdon focuses less on processor growth and more on the aftermath of the company’s collapse, with the legal consequences of the bankruptcy continuing to play out.

A significant event was the end of bankruptcy protection. In July 2025, the Nevada federal court lifted the automatic stay in the case Gaia Ethnobotanical v. T1 Payments, signaling the end of the bankruptcy protection and allowing plaintiffs to move forward with their claims. By February 25, 2026, the court had already entered default judgment against T1 for failure to respond.

In the wake of these judgments, another court ruling on March 30, 2026, granted default judgment in favor of Vida Divina, LLC, and Gaia Ethnobotanical, LLC, signaling that T1 Payments failed to defend itself in any normal capacity.

Despite these setbacks, Kasdon remains relevant due to the ongoing litigation with New U Life Corporation. As of early 2026, the case continues to progress, with deadlines for summary judgment motions being extended. A Nevada court’s September 29, 2024, ruling allowed amended claims, including civil theft and federal RICO violations, to proceed. This move signals the court’s acknowledgment that the allegations were serious enough to survive this stage.

The case also shows signs of bankruptcy-related activity, with a March 27, 2025, order referencing an agreement to purchase certain estate claims for $36,000, suggesting that post-bankruptcy actions are actively shaping the legal landscape.

The Payvision-T1 Payments Structure

Investigative reports and U.S. legal filings suggest that Payvision and T1 Payments operated a structure that allowed high-risk U.S. merchant transactions to be routed through European entities linked to Kasdon, bypassing the scrutiny that might have applied to U.S.-based high-risk businesses.

This arrangement allowed T1 Payments to source or manage the high-risk U.S. merchants while Payvision handled the European processing layer. Entities such as T1 Payments Limited in the UK and TGlobal Services Limited in the Isle of Man allegedly acted as intermediaries, creating the illusion of non-U.S. merchant activity while still processing high-risk U.S. transactions. The core concern here is whether such an arrangement concealed the true risks associated with the business, potentially weakening compliance controls and due diligence outcomes.

This structure, if true, would have allowed high-risk U.S. transactions to enter the acquiring chain under a cleaner European façade, thus avoiding closer scrutiny by regulators.

Key Timeline:

June 6, 2023: T1 Payments Limited in the UK dissolved by compulsory strike-off.
October 5, 2023: A bankruptcy opinion noted that Kasdon paid debtor’s counsel in the Chapter 7 proceedings.
September 29, 2024: Nevada court ruling allows amended claims to proceed in New U Life case.
March 27, 2025: Discovery order in New U Life case references the purchase of estate claims.
June 10, 2025: T1’s bankruptcy case officially closed.
July 23, 2025: Stay lifted in Gaia Ethnobotanical v. T1 Payments.
February 11, 2026: Summary judgment reply deadlines extended in New U Life case.
March 30, 2026: Default judgment entered against T1 in related merchant actions.

Scam-Or Project Takeaway

The ongoing legal battles and procedural developments surrounding T1 Payments and Donald Kasdon underscore the importance of transparency and compliance in high-risk payment processing. The alleged Payvision-T1 structure raises significant questions about how offshore entities may be used to disguise high-risk U.S. merchant activity, potentially skewing compliance assessments and evading regulatory oversight.

Whistleblower Call to Action

Scam-Or Project invites whistleblowers, former merchants, payment insiders, and compliance professionals with information on T1 Payments, Donald Kasdon, Payvision, related entities, or similar high-risk processing structures to come forward. Confidential submissions help expose the operators and mechanisms that shape the evolving cyberfinance risk landscape.