Intrade Shuts Down—Why?

Derek Thompson
March 11, 2013

Intrade, the Internet's most famous marketplace of predictions, has shut down due to circumstances "which in accordance with Irish law" (it is based in Ireland) require the company to cease operations immediately. If you visit, you will find find the following page:

Screen Shot 2013-03-10 at 9.05.47 PM.png
Screen Shot 2013-03-10 at 9.05.47 PM.png

The money quote from this message:

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.

In November last year, the Commodity Futures Trading Commission filed a lawsuit against the company, claiming it was allowing Americans to bet on the price of commodities on an unregulated exchange, which is against U.S. law.

For those with money tied up with Intrade, the company says it has "closed and settled all open contracts at fair market value as of the close of business on March 10, 2013" and that they can still see their account details by logging into the site.

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