Second Life's Ginko Financial Flounders with $750,000 in Unpaid Liabilities
Second Life's Ginko Financial Bank is unable repay $L200,000,000 ($750,000 U.S.) in account holder money. The big question in Second Life lately is where did $750,000 U.S. dollars of real value in Second Life investments go? It seems the deal was too good to be true, up to 60% interest on account deposits made with Second Lifes virtual bank "Ginko Financial". Ginko is a virtual investment firm that operates like a bank, you deposit Second Life currency, the Linden dollar, and Ginko was to pay interest on that account balance.
According to Ginko Financials President, Nicholas Portocarrero, there's upwards of two hundred million Lindens on deposit with the floundering virtual bank. That's constitutes a value of $750,000 in United States currency. But where did all the money go? When Mr. Portocarrero was asked if he would publish an accounting of his investments, by Second Life Herald reporter Pixeleen Mistral, his simple statement was "Never". But he also stated that he had no intention of running away from the situation either.
In a notice, sent in Second Life by Ginko Financial employee Hinoserm Rebus, he made the following statement:
"I would like to personally try to explain some of what's been going on.
About a week and a half ago, we saw an increased number of withdrawals; the time to speculate as to why this happened has since come and gone, so I will leave it at that. No matter what started it, the result is the same: We have expended every possible short-term resource, and are still unable to meet the current demand for funds. We have attempted several different things to remedy the situation (which is in short why the interest rates and limits have fluctuated wildly), but none of them turned into a viable permanent solution.
For the time being, we have decided to continue doing business normally, but leaving the withdrawal queue in place with an expanded L$1,000,000/day limit, to give an indication as to where the end of this situation may be. However, a realistic estimate could possibly extend in to the realm of several months.
According to Ginko Financials President, Nicholas Portocarrero, there's upwards of two hundred million Lindens on deposit with the floundering virtual bank. That's constitutes a value of $750,000 in United States currency. But where did all the money go? When Mr. Portocarrero was asked if he would publish an accounting of his investments, by Second Life Herald reporter Pixeleen Mistral, his simple statement was "Never". But he also stated that he had no intention of running away from the situation either.
In a notice, sent in Second Life by Ginko Financial employee Hinoserm Rebus, he made the following statement:
"I would like to personally try to explain some of what's been going on.
About a week and a half ago, we saw an increased number of withdrawals; the time to speculate as to why this happened has since come and gone, so I will leave it at that. No matter what started it, the result is the same: We have expended every possible short-term resource, and are still unable to meet the current demand for funds. We have attempted several different things to remedy the situation (which is in short why the interest rates and limits have fluctuated wildly), but none of them turned into a viable permanent solution.
For the time being, we have decided to continue doing business normally, but leaving the withdrawal queue in place with an expanded L$1,000,000/day limit, to give an indication as to where the end of this situation may be. However, a realistic estimate could possibly extend in to the realm of several months.
|
|