Intrade, a website dedicated to online trades and bets, announced on Monday that it would no longer allow U.S. customers to participate in its exchange. The announcement comes following a lawsuit filed earlier today by the U.S. Commodity Futures Trading Commission, which regulates the trading of futures contracts. The agency took issue with the fact that Intrade offered trading to U.S. customers on the future prices of commodities such as gold and crude oil, despite a previous agreement not to do so.
Read Intrade’s full announcement below:
ATTENTION U.S. CUSTOMERS
Monday, Nov 26, 2012
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. We strongly urge you to begin this process immediately:
Step 1: Close out open predictions
You must close out all open predictions before 8:00am GMT (3:00am ET) on December 23, 2012. Instructions on how to close out an open prediction can be found HERE.
If this is not done then by the deadline noted above, Intrade will close out your predictions for you at what we consider to be fair market value as of the daily session close of December 23, 2012.
Fair market value will be determined using current and historical price information, including daily close prices and recent trades. Values will be set at the absolute discretion of Intrade and will not be open for review, discussion or argument – our determination of fair market value is final.
Step 2: Withdraw funds
Please note, no customers will be charged the $4.99 monthly fee due on December 1, 2012.
Members have until December 31, 2012, to withdraw all funds from their account. Instructions on how to request a withdrawal can be found HERE.
To help you receive your funds as quickly and easily as possible, the $20 fee normally charged by Intrade for processing a bank wire withdrawal will be waived. Please be aware however that any fees charged by the sending and receiving bank, plus any intermediary bank the transfer is routed through will NOT be refunded by Intrade.
We understand this announcement may come as a surprise and a disappointment, and we apologize for the short notice and haste required to deal with this. We would like to sincerely thank all US customers for their custom, support and loyalty over the years.