Midas Bank and WSE

Even without the official forums, there's plenty of info to be had via Google. No, I don't believe everything I read, but when 50 different sites have 50 variations on the same theme, it's obvious there's a problem.

That's what I did when I first saw a bank in SL and remotely toyed with the idea of 'investing.' Common sense dictates as much research as possible before making ANY decisions regarding money. I mean, the idiotic interest rates that were promised? I compared that to my RL bank's interest and figured, 'Ooohhh, so much a scam.."

No, not everyone is going to use their common sense. If they did, we wouldn't need laws or rules!

Exactly, I honestly don't understand why people use them just a recipe for losing your money.

As another poster said, if you have that many lindens you need to invest them, then convert them to USD/local currency and invest properly.

Yep. I agree. Since there is no realistic way to regulate "investments" in Second Life.

Basically no way to differentiate between legit and scams.

And since all the supposedly "legit" ones have/are in the process of failing

The Proper course of action is the ban them.

What a massive he-said she-said between Midas and WSE. Amazing what goes on behind closed doors... I wonder what insiders were able to get their money out?

It just underscores that you shouldn't give anyone money that you aren't prepared to lose. I feel bad for Midas because he should have gotten the bond payment. It speaks doubly bad of Hope Capital because they are apparently a house of cards, too, if they can't make their own bond payments. Hope you all don't own HCL, it's toilet paper too.

And I would agree that the only regulation here should be an outright ban.

Unfortunately trust is a tool of the conman too.

True, maybe MORE often the tool of the conman.

After all an honest deal has transparent value and doesn't need trust to sell it.

mmmm, Not so sure, In order to regulate it, LL would have to take some responsibility for it. I think what Really LL needs to do is A: Ban the activity entirely within the confines of all LL controlled environments (And include stock exchanges and other financial Institutions) and then put out a Clearly worded advisory that SL Clients should not trust or use ANY similar institution Operating OUTSIDE LL Jurisdictions Driving home that they are extremely risky, and LL will NOT take any part in Compensating anyone for losses incurred by using such an Institution.

Since there is no way for an SL bank or stock exchange to Guarantee Investments, Well, we all saw what happened with Ginkos. There is still the Minute Chance the whole scheme was a Legitimate one, But a panic, and a "Run on the bank" would produce the same results in an Uninsured or Unsecured RL Financial Institution. Without insurance, or some Form of Official security, the whole idea is Just too Risky.

Angel.

A shop owner that didn't give customers their products would be out of business pronto. This bank went on for YEARS!!!


Here Mr "Banker", take my money! So I have no way to verify who you are or what you do, all the more to believe your outlandish claims of ponzi rate returns!

Below is a quote showing the hubris of the Ginko guy. What did he make off with? A half a million US dollars?

Its hard to say due to the inflated figures because of the outlandish interest he promised.

But definitely deposits must have been somewhere in the 6 figures.

I have to seriously wonder what is going to happen now with WSE. It's shown itself to not be a viable place to put your money. I feel for the people who had their assets converted into WTF. Because they will be asking "WTF happened to my money?!" And this, hiding behind the veil of the Linden dollar being a fake currency... it is all BS. These people should be banned, and all banking/investment houses should be banned.

Yes I think that in this case LL should be stepping in since ginko I think there have been 3 or 4 others that have just gone poof. Some were complete scams while others were well probably scams.

The last one I know of was "the bank" (it had another name can't remember though) the guy just walked away with the money.

The good question is -

Where did the money go? Not the "interest" but the principle?

It must have gone somewhere. For all these shell game evasion tactics these "fund" managers pull. It really is simple. Where did they money poof to?

If most of the "real" money went to pay the "salaries" of the "fund" managers then it says a lot.

Update here to avoid crossposting: http://slcapex.com/forums/topic/general/902?page=3

All people affected, please check out the Midas Customers Group.
(group, search, join )

If Lindsay's speculation re: the conversation went as it did, Midas is right - it is not Luke's problem. If Midas went belly up after Luke paid what he owed, that is a different story. But withholding money rightfully owed and dissolving without some egregious act on Midas' part was not the ethical thing to do.

I guess for stock exchanges its kind of a gamble anyhow. I would hope that most people know that they are playing what can be a dangerous game and that they only invest in what they can afford to loose. Its not really like the bank thing where people who are possibly not particularly shall we say skilled in a money sense and not understanding that these banks are pretty much misreprenting themselves and just putting in money to store it.

Banks I think should be banned. Stock exchanges on the other hand because of the fact that they are basically known for what they are by those who would use them I dont mind. I think some are likely better then others in their ability to properly investigate, but on the other hand the only way to really investgate an avatar is to ask for access to it so you can see what he actualy does have in the way of lindens and look into his account which well giving our passwords and acess for this purpose is not going to go over well. Although the exchange anshe chung set up would only hold stocks to stuff she inspected and did insist on having access to the avatar to make sure they actualy were telling the truth. I have no idea if she actualy got that off the ground. I know that I would not be giving my info to a stranger, but those were her measures for investigation. Cause there is no real way outside of that to audit.

You forget your own signature:

Nicholas Portocarrero: "The deal was, you loan me some money. I'll pay you interest and do my best to pay you back"


There are no differences between Banks and Stock Exchanges.

There is no way to make the contracts binding, thus the fund managers will only pay them as long as the money is pouring in. As soon as the least little thing looks like it will cost them money, they shut down. So what if it was other people's money?