Bank Failure in Second Life Leads to Calls for Regulation
By Bryan Gardiner Email 08.15.07 | 2:00 AM
The recent collapse of Ginko Financial, a "virtual investment bank" in Second Life, has spurred calls for more oversight, transparency and accountability, especially when it comes to business practices in the metaverse.
Last week, Ginko Financial -- an unregulated bank that promised investors astronomical returns (in excess of 40 percent) and was run by a faceless owner whose identity is still a mystery -- announced it would no longer exist as a financial entity.
The declared insolvency meant the bank would be unable to repay approximately 200,000,000 Lindens (U.S. $750,000) to Second Life residents who had invested their money with the bank over the course of its three and a half years of existence.
750,000.00 US$ gone from users accounts, and no one knows the name of the guy running Ginko Financial. I can pretty much guarentee someone at Linden Lab, knows the name of the guy who funneled 750,000 GRAND threw LindeX this year. I can nearly guarentee this because the thought of Linden Lab not having a clue as to who would be funneling that kind of cash threw their game; makes me want to vomit in disgust at how piss poorly their company has been mismanaged. So my money is on Linden Lab knowing full well who the money makers are in their little world.
If you lost money threw Gingo Financial; well your a dumb ass. Handing your money over to a complete stranger. No I am not laughing with you, I am laughing AT you.
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