21–30 of 58 posts
1. Settling all open contracts. 2. Shutting down trading. 3. Not making cash payouts.
#3 would be the end result of any of various sorts of problems. #1/#2, however, suggest there were problems with the prediction markets themselves, rather than -- for example -- straight embezzlement from the company's bank accounts.
What exactly was intrade?
The title here is misleading. They are "ceasing trading activity" ... "as we do all we can to resume operations as promptly as possible." The statement alludes to "financial irregularities" which are being investigated.
The money is gone. Either fraud (founders were skimming off the top all along), or they got hacked (and the 'hack' could have been an inside job as well). That's why they're not paying out - they don't have enough funds available. Same thing happened previously to one of the largest bitcoin exchanges[1]. [1] http://www.dailytech.com/Inside+the+MegaHack+of+Bitcoin+the+...
The money is gone. Either fraud (founders were skimming off the top all along), or they got hacked (and the 'hack' could have been an inside job as well). That's why they're not paying out - they don't have enough funds available. Same thing happened previously to one of the largest bitcoin exchanges[1]. [1] http://www.dailytech.com/Inside+the+MegaHack+of+Bitcoin+the+...
Earlier quoted context omitted.
Well, "financial irregularities which in accordance with Irish law oblige the directors ..." is legalese that, in essence, means something like "we've caught someone [stealing from the cookie jar / lying about losses] on a so large scale that the board is not sure if the company will be able to pay the money it owes to everyone". There are just a few cases where the law obliges directors to do something; I'm not an e…
Well, it's worse than that. No significant company would shut down in this manner unless they were 100% certain that they did NOT have the money to pay their debts.
Earlier quoted context omitted.
Well, "financial irregularities which in accordance with Irish law oblige the directors ..." is legalese that, in essence, means something like "we've caught someone [stealing from the cookie jar / lying about losses] on a so large scale that the board is not sure if the company will be able to pay the money it owes to everyone". There are just a few cases where the law obliges directors to do something; I'm not an e…
Well, it's worse than that. No significant company would shut down in this manner unless they were 100% certain that they did NOT have the money to pay their debts.