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.
Since March 10, 2013, the Company has been operating with new funds invested by current shareholders.
We are now very confident about the reasons which caused the current circumstance of the Company; however, for legal reasons we are not yet at liberty to document them to you. I can confirm that the Company, if it is able, intends to vigorously pursue two substantial monetary claims against two distinct parties for an aggregate amount greater than $3,500,000.
Because of these circumstances, the Company has now contacted all members with account balances greater than $1000, and proposed a “forbearance” arrangement between these members and the Company, which if sufficient members agree, would allow the Company to remain solvent.
The successful recovery in the future of even part of our intended legal claims, ought to allow the Company to provide full restitution to Members. We would also hope at that time, that the Company would be in a position to resume commercial operations. For now, we are in active discussions with current shareholders and possible new investors as we seek further investment in the Company to strengthen our financial position.
Please note that while we will try our very best to ultimately return 100% of Members’ settled account balances, we can make no promise or assurance that we will be able to do so. It is possible that, even though we gain a sufficient number of Members to agree to provide forbearance to the Company, the Company may go into liquidation in the future.
By Tuesday, April 16, 2013, we expect to be able to inform our members if sufficient forbearance has been achieved. If so, we will then resume limited operations of the Company and we will be able to process requests for withdrawals as agreed. If sufficient forbearance has not been achieved, it seems extremely likely that the Company will be forced into liquidation.
I am truly grateful for your personal expressions of support and your patience as we try to deal with this unfortunate circumstance. I appreciate the feedback provided, and I intend to exceed your expectations as we try to correct this situation. I hope that you decide to stand by our side in the effort to preserve the Company and in our efforts to pursue the complete restitution of all of your funds.
Sincerely,
Ronald Bernstein
Director, Intrade
March 24, 2013
There is little new information to that provided previously on March 10, 2013. We believe our continuing investigations will be concluded no later than April 5, 2013.
With the advice of counsel, the Directors will determine the appropriate further course(s) of action required. Formal legal inquiries have already been undertaken. To fully protect the Company’s legal positions, we are unable to comment further at this time.
We are also in the process of retaining new accountants and auditors. Company bank accounts remain frozen until such time as we clearly understand the financial position of the Company. Therefore it is still not possible to make any payments to members before the investigations have been 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 for all inquiries by email at: accountservices@intrade.com
Sincerely,
The Directors of Intrade the Prediction Market Limited
March 10, 2013
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
TL;DR: summary: they have not been forced into liquidation yet, and still might come back one day.
July 11, 2013
Thank you very much for your patience and support as we work our way through difficult circumstances.
Customer withdrawals to date have been met with accuracy and efficiency. The Company has taken steps to significantly improve internal banking and bookkeeping procedures, by adding specific safeguards and business procedures to fully and absolutely protect segregated customer funds.
The Company has authorized the preparation of its’ 2012 audited accounts, these are estimated to be completed and filed by August 16th, 2013.
We estimate that the Company has sufficient funds to advance its’ legal claims at least through the end of the year. We are not able at this time to report on current progress.
Business Development initiatives are also being progressed via productive and ongoing discussions with potential partners.
We will continue to keep you informed as things develop.
Sincerely,
Ronald Bernstein
Director, Intrade
May 20, 2013
Intrade is now processing withdrawals for all customers—including US account holders. You can log into your account and request a withdrawal on the My Intrade page of the website. Please note that at this time we are processing withdrawals by bank wire only—we are not processing withdrawals by check or any other method of payment.
For more information on withdrawing the balance of your Intrade please see these FAQ’s. If you have any further questions please send an email to accountservices@intrade.com.
May 6, 2013
We have begun processing withdrawals for the account holders who agreed to forbearance. On Wednesday, May 8th, we will begin processing withdrawals for all non-US accounts. On Wednesday you will be able to log into your account and request a withdrawal on the My Intrade page of the website. Please note that at this time we are processing withdrawals by bank wire only—we are not processing check withdrawals.
On Monday, May 20th, we will resume processing withdrawals from US accounts. Full details on how US customers can withdraw their funds will be published on the Intrade homepage closer to the time.
These dates have been set based on the expected number of withdrawals and the resources available to process these requests. Depending on the number of withdrawal requests received, Intrade reserves the right to extend these dates if required. Please keep an eye on the Intrade homepage for further updates.
April 30, 2013
As of the close of business on April 29th, 2013, Intrade has received agreements of forbearance with certain members in an amount sufficient to allow the Company to remain solvent.
In the next few days, instructions will be provided accordingly so that members’ non-waived funds may be returned as quickly as possible. We expect to begin processing withdrawals on Thursday, May 2, 2013.
We are deeply appreciative of your expressions of support, as we now turn our attention to the pursuit of restitution of all member funds. Thank You.
Sincerely,
Ronald Bernstein
Director, Intrade
April 22, 2013
Since April 5, 2013, we have been working on the creation of a forbearance agreement with Members that, if accepted in a sufficient amount, would allow the Company to remain solvent; to immediately pay Members at least 50% of their settled account balances; and to prosecute various legal claims against parties we believe have harmed the Company.
At this time, we are very close to achieving the required acceptance. As such, it has been determined that the most responsible action is to extend the deadline previously established to allow time to complete discussions with some Members who have not yet conclusively resolved to accept the forbearance arrangement. It is our hope that their agreement now will help us achieve the required total amount.
Please note that even partial re-payments of member funds could not begin until it has been confirmed that sufficient funds in aggregate have been agreed to be waived.
In addition to these efforts, we have been engaged in serious discussions with at least one investment firm about investment into and/or partnership with Intrade. Any arrangement contemplated by a new transaction would only be considered by the Company if it preserved AT LEAST the benefits of the terms of the currently proposed forbearance arrangement. Our discussions also include the possibility of no forbearance by members, with some contingencies.
In the very near future, we hope to announce either 1/ the accomplishment of forbearance agreements in a sufficient amount to allow partial repayments of member funds, or 2/ the relevant terms of a proposed transaction involving the Company which would be of greater benefit to our Members than the forbearance plan.
In the meantime, we will continue to explore every avenue we can to preserve and improve the situation for members.
We will provide a further update here no later than April 30, 2013.
Do we know what happened? It sounds like crooked bookkeeping on the part of Intrade.
Recent evidence supports your idea. Intrade is missing $700K from its books.
http://www.intrade.com/v4/home/
Archiving for posterity:
TL;DR: summary: they have not been forced into liquidation yet, and still might come back one day.
July 11, 2013
Thank you very much for your patience and support as we work our way through difficult circumstances.
Customer withdrawals to date have been met with accuracy and efficiency. The Company has taken steps to significantly improve internal banking and bookkeeping procedures, by adding specific safeguards and business procedures to fully and absolutely protect segregated customer funds.
The Company has authorized the preparation of its’ 2012 audited accounts, these are estimated to be completed and filed by August 16th, 2013.
We estimate that the Company has sufficient funds to advance its’ legal claims at least through the end of the year. We are not able at this time to report on current progress.
Business Development initiatives are also being progressed via productive and ongoing discussions with potential partners.
We will continue to keep you informed as things develop.
Sincerely,
Ronald Bernstein Director, Intrade
May 20, 2013
Intrade is now processing withdrawals for all customers—including US account holders. You can log into your account and request a withdrawal on the My Intrade page of the website. Please note that at this time we are processing withdrawals by bank wire only—we are not processing withdrawals by check or any other method of payment.
For more information on withdrawing the balance of your Intrade please see these FAQ’s. If you have any further questions please send an email to accountservices@intrade.com.
May 6, 2013
We have begun processing withdrawals for the account holders who agreed to forbearance. On Wednesday, May 8th, we will begin processing withdrawals for all non-US accounts. On Wednesday you will be able to log into your account and request a withdrawal on the My Intrade page of the website. Please note that at this time we are processing withdrawals by bank wire only—we are not processing check withdrawals.
On Monday, May 20th, we will resume processing withdrawals from US accounts. Full details on how US customers can withdraw their funds will be published on the Intrade homepage closer to the time.
These dates have been set based on the expected number of withdrawals and the resources available to process these requests. Depending on the number of withdrawal requests received, Intrade reserves the right to extend these dates if required. Please keep an eye on the Intrade homepage for further updates.
April 30, 2013
As of the close of business on April 29th, 2013, Intrade has received agreements of forbearance with certain members in an amount sufficient to allow the Company to remain solvent.
In the next few days, instructions will be provided accordingly so that members’ non-waived funds may be returned as quickly as possible. We expect to begin processing withdrawals on Thursday, May 2, 2013.
We are deeply appreciative of your expressions of support, as we now turn our attention to the pursuit of restitution of all member funds. Thank You.
Sincerely,
Ronald Bernstein Director, Intrade
April 22, 2013
Since April 5, 2013, we have been working on the creation of a forbearance agreement with Members that, if accepted in a sufficient amount, would allow the Company to remain solvent; to immediately pay Members at least 50% of their settled account balances; and to prosecute various legal claims against parties we believe have harmed the Company.
At this time, we are very close to achieving the required acceptance. As such, it has been determined that the most responsible action is to extend the deadline previously established to allow time to complete discussions with some Members who have not yet conclusively resolved to accept the forbearance arrangement. It is our hope that their agreement now will help us achieve the required total amount.
Please note that even partial re-payments of member funds could not begin until it has been confirmed that sufficient funds in aggregate have been agreed to be waived.
In addition to these efforts, we have been engaged in serious discussions with at least one investment firm about investment into and/or partnership with Intrade. Any arrangement contemplated by a new transaction would only be considered by the Company if it preserved AT LEAST the benefits of the terms of the currently proposed forbearance arrangement. Our discussions also include the possibility of no forbearance by members, with some contingencies.
In the very near future, we hope to announce either 1/ the accomplishment of forbearance agreements in a sufficient amount to allow partial repayments of member funds, or 2/ the relevant terms of a proposed transaction involving the Company which would be of greater benefit to our Members than the forbearance plan.
In the meantime, we will continue to explore every avenue we can to preserve and improve the situation for members.
We will provide a further update here no later than April 30, 2013.
Sincerely,
Ronald Bernstein Director, Intrade
It could also be something like violation of guidelines to protect against money laundering.
That also possible. They were very vague. I hope we can get a viable (even if not distributed, and hopefully not using bitcoins) replacement.