Intrade charged with accepting US bets
Online exchange stops accepting US customers following Commodity Futures Trading Commission complaint.
Dublin-based online prediction and betting business Intrade has ceased taking wagers from US customers following a civil complaint filed by the Commodity Futures Trading Commission (CFTC).
The civil action specifically challenges markets offered by Intrade’s parent company Trade Exchange Network (TEN) on currencies, crude oil and gold. The business also offers markets on US Presidential elections.
The CFTC said in the complaint: “During the period from September 2007 to June 25, 2012 (the “Relevant Period”), TEN, by and through its employees and agents, used its affiliated website www.intrade.com, to continue to offer for trading to U.S. customers, and to solicit and accept orders (and funds) from U.S. customers for the trading of options off-exchange.”
A few hours after the civil action was filed, Intrade announced on its website that US customers would have to close their accounts.
A statement on Intrade’s website said: “We are sorry to announce that due to legal and regulatory pressures, Intrade can no longer allow US residents to participate in our real-money prediction markets. Unfortunately this means that all US residents must begin the process of closing down their Intrade accounts.”
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 yesterday’s complaint also accuses Intrade of violating.
Intrade’s founder John Delaney died last year aged 42 while climbing Mount Everest.