Massive bank fraud in massively multiplayer game EVE

By Cory Doctorow at 10:15 pm Friday, Jul 3

The chairman of the virtual bank in EVE Online, a space-trading/piracy game, absconded with billions of virtual credits, swapping them for $5,000 in cash to make a house payment. The embezzlement caused a run on the bank and has rocked the economy of EVE.

The run on the bank has come to about 600 billion ISK, which has been withdrawn. However, we have a very big group of excellent supporters, who have deposited about 105 billion ISK sitting in Sweep to keep us liquid. We are extremely grateful for this. Currently the run seems to be mostly over with only a slightly higher withdrawal rate still, than deposit rate. That's to be expected, and in-line with EBANK's strategy to shrink to a more managable level.

EBANK has always been extremely sound, due to our massive reserves. Our checks and balances have proven themselves to work as a mitigation device and by having the reserves spread out over several directors, the embezzlement was kept to a minimum. However, the run on the bank had the potential to do great damage to EBANK as people frantically made withdrawals to ensure they would not be caught if the bank ran short.

We have also had several offers from very large entities, regarding big loans, should we need to cover any insolvency. Frankly, this has yet to be needed. But we are grateful for the support.

Billions stolen in online robbery

New perspective on EVE Online's latest bank embezzlement (via /.)