Intrade Online Brokers Offers Deal to Support Revival

Published Sunday, April 07, 2013 -

After auditors found ‘financial irregularities’ on the books of Intrade the firm abruptly shut down in March of 2013. The Dublin Ireland located firm is asking former customers of Intrade to accept 50 cents on the dollar as part of an attempt to revitalize the firm. Intrade’s founder, John Delaney past away after trying to climb Mount Everest in 2011 and was implicated in the irregular entries where he received questionable payments of $2.6 million dollars.

Intrade was effectively shredded in 2012 after the US Commodity Futures Trading Commission filed a complaint in federal court accusing Intrade of acting as an unlicensed commodities exchange. When Intrade withdrew from the American market its customer base was subsequently demolished. In a last minute effort to bring the company away from the brink of liquidation Bloomberg News reported that Intrade’s former customers have received emails from Ronald Bernstein, who is leading the charge to bring the company back online

The emails revealed that there is a $700k shortfall in client funds on the company’s books, and these clients have been asked to (a) accept immediate payment of 50% of the value in their frozen accounts and (b) agree to waive claims on the remaining 50% and rely on Intrade’s “solemn promise” that the company will do its best to make customers whole at an unspecified later date. If these customers don’t accept the deal, Bernstein says the company is “extremely likely to be forced into liquidation.” Apparently 40 of Intrade’s biggest accounts have signed onto the revitalization deal and should this group remain committed Bernstein says the firm will ‘remain solvent.’

Meanwhile Intrade officials continue to try to attract other investors to keep the boat afloat. The unique situation the company has found itself in is highlighted by Nevada legislators who have since put forward a proposal that would allow the state’s sportsbooks to offer prop bets on federal election contests.

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