InTrade shuts down pending probe

Dublin-based online prediction and betting business Intrade has ceased trading following a lengthy civil complaint filed by the US regulator Commodity Futures Trading Commission (CFTC).

In November last year Intrade stopped taking bets from US customers as the civil action challenged markets offered by Intrade’s parent company Trade Exchange Network (TEN) on currencies, crude oil and gold. The business also offered markets on US Presidential elections.

Intrade’s board of directors said in a statement: “With sincerely 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.”

All members’ accounts have been closed, with any open contracts settled “at fair market value” as of close of business yesterday.

The board of directors also claimed they will “do all we can to resume operations as promptly as possible” as well as maintain its exchange system technology and retain all stored information.

TEN paid a US$150,000 fine in 2005 and agreed to stop taking bets from US customers after the CFTC issued a cease-and-desist order, which last year’s complaint also accuses Intrade of violating.

Intrade’s founder John Delaney died in 2011 aged 42 while climbing Mount Everest.