Skip to: Content
Skip to: Site Navigation
Skip to: Search

August 21, 2008 8:24:04 AM CDT



Virtual Bank Collapse Causes Real Pain

Posted Aug 15, 07 2:19 PM CDT in Technology Arts & Living 

(Newser) – Ginko Financial, an unregulated investment bank that promised returns of up to 60%, collapsed recently, costing its customers 200 million Lindens—the currency of online virtual universe Second Life, where the bank existed. While the bank, managed by a mysterious, anonymous owner, catered only to computer-generated avatars in its 3 1/2 years existence, the money it lost—about $750,000—was very real.

Second Life currently has 20 to 30 banks that offer the same whopping returns and use the same strategy that Ginko did, reports Wired, spurring calls for federal regulation over the cyber community. Linden Lab, the company that runs Second Life, recently asked the FBI to investigate casino activity in the metaverse, which led to a ban on all gambling.

Source Wired

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon
Kevin Alderman manipulates his "Second Life" online avatar Stroker Serpentine on July 12, 2007, at his home-based office in Lutz, Fla. Alderman is involved in a groundbreaking lawsuit to stop others in...   (Associated Press)
Manpower Island, the virtual headquarters of Second Life.(PRNewsFoto/Manpower Inc.)   (Associated Press)
Second Life residents lost the collective equivalent of $750,000 when a virtual bank closed without warning.   ((c) Czq'bqymc)
Hundreds of Second Life residents have expressed non-virtual rage at the disappearance of the funds.   (Flickr; creative commons.)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Tags

Internet   FBI   bank   gambling   casino   Second Life   virtual investment bank



Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular


Other Home Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »