Author Topic: Intrade is apparently shut down due to missing cash  (Read 4240 times)

GS

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Intrade is apparently shut down due to missing cash
« on: April 17, 2013, 04:17:30 PM »
I never used Intrade, but I did visit quite a bit during the 2012 political battles.  For those of you not familiar, they sold what they called futures contracts for event predictions.  For example, you could buy and sell Romney or Obama futures, and be paid out based on who wins.   Some people just called it straight out betting.  They were banned from holding accounts for US citizens in late 2012.  Pretty scarey to see how these loosely regulated "investment" sites can go south fast.

http://www.intrade.com/v4/home/
« Last Edit: April 17, 2013, 04:22:38 PM by GS »

Fred

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Re: Intrade is apparently shut down due to missing cash
« Reply #1 on: April 19, 2013, 12:34:07 AM »
Missing cash?  :o

Reminds me of MF Global.

GS

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Re: Intrade is apparently shut down due to missing cash
« Reply #2 on: April 19, 2013, 07:04:34 PM »
Yeah, this is the opening statement on the front page of their website:

Quote
We have now concluded the initial stages of our investigations about the financial status of the Company, and it appears that the Company is in a cash “shortfall” position of approximately US $700,000 when comparing all cash on hand in Company and Member bank accounts with Member account balances on the Exchange system.

If the Company is not able to rectify this cash shortfall position very quickly, the Company will become insolvent and therefore is very likely to go into liquidation.

Like you said, comparing to MF Global, it looks like someone looted the member's "investment" accounts.
 

ee1x

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Re: Intrade is apparently shut down due to missing cash
« Reply #3 on: May 02, 2013, 02:28:30 PM »
Does anybody know if other companies might be venturing into this space soon?
Investing since March 2012