Intrade Shuts Down: Online Gambling Firm Fell on Bad Times
Troubled Dublin-based betting site Intrade.com has shut its doors.
Customers Monday were greeted with the following message upon landing on the Intrade.com website:
With sincere regret we must inform you that due to circumstances recently discovered we must immediately cease trading activity on www.intrade.com.
These circumstances require immediate further investigation, and may include financial irregularities which in accordance with Irish law oblige the directors to take the following actions:
- Cease exchange trading on the website immediately.
- Settle all open positions and calculate the settled account value of all Member accounts immediately.
- Cease all banking transactions for all existing Company accounts immediately.
During the upcoming weeks, we will investigate these circumstances further and determine the necessary course of action.
To mitigate any further risk to members’ accounts, we have closed and settled all open contracts at fair market value as of the close of business on March 10, 2013, in accordance with the Terms and Conditions of our customers’ use of the website. You may view your account details and settled account balances by logging into the website.
At this time and until further notice, it is not possible to make any payments to members in accordance with their settled account balance until the investigations have concluded.
The Company will continue the maintenance and technology operations of the exchange system so that all information is preserved properly.
We are not able to provide telephone support or live help services at this time, please contact the company by email at: accountservices@intrade.com
We appreciate your custom and support over the years. We are committed to reporting faithfully the status of things as they are clarified and hope you will bear with us as we do all we can to resume operations as promptly as possible.
Sincerely,
The Board of Directors of Intrade the Prediction Market Limited
Regulators from the US Commodity Futures Trading Commission (CFTC) sued Intrade late last year for offering commodity option contracts to U.S. customers for trading, as well as soliciting, accepting, and confirming the execution of orders from U.S. customers, all in violation of the CFTC’s ban on off-exchange options trading.
Specifically, according to the complaint, from September 2007 to June 25, 2012, Intrade operated an online “prediction market” trading website, which allowed U.S. customers to trade options products prohibited by the CFTC’s ban on off-exchange options trading. The company was forced to stop accepting real money bets from US customers.
The company’s founder, John Delaney, passed away in May of 2011 while attempting to climb Mount Everest.
- Aaron Goldstein, Gambling911.com
