Wednesday, June 10, 2009

Big Surprise

Eve Bank has an internal theft of 200 billion according to Massively.

We've just gotten word that EBANK, a player-run bank in EVE Online self-described as "the largest financial entity ever seen in EVE" has been rocked by embezzlement from its own CEO, Ricdic. The former CEO stole roughly 200 billion ISK from EBANK, which is roughly 8.6% of the entire 2.3 trillion ISK that EVE's playerbase has deposited. EBANK chairman Hexxx has issued a statement on the game's official forums, stating that Ricdic has been banned by CCP Games for engaging in RMT, also adding that the former CEO "has scammed."
I don't understand how people can trust in player run institutions to such a large degree. Without any consequences to scamming, sooner or later someone in the position of power will succumb to the greed of that much money.

8 comments:

  1. Because the people who run EveBank have worked very hard to ensure that they are a trustworthy lot. Honestly, if RMT hadn't been involved, Ricdic prolly never woulda nicked anything.

    Also, I think the fact that only 8.6% of the money was stolen by the *CEO* is a very good testament to the fact that EveBank's internal set up is, in fact, secure enough to protect it's investors and account holders against fraud. Every single one of them would have to turn, and work together to do it, in order for it all to go up in smoke.

    If it's only 8.6%, I would be willing to bet quite a bit that EveBank will have repayed everyone who's accounts were damaged by the end of the year, if not the end of the summer.

    -Az

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  2. Its great that the owners of Eve Bank have taken so many precautions to protect the investments of players. It really is.

    But they are, at the end of the day, volunteers. Protected by internet anonymity. A large proportion of them could be alts of one person such as the last EBank scandal. As long as it has the words "player run" in the title, I don't trust it.

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  3. Side comment: LaVistaVista however is not protected by internet anonymity, due to having run (and successfully won) 2 terms in the CSM. Not saying you're wrong on the whole, just saying not all EBANK's directors are anonymous.

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  4. Spot me a trill and I'll promise you a 10% return on your investment. Probably.

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  5. Excuse my ignorance and such, but what does RMT stand for?

    Real Money Trading?
    Royal Mongoose Training?

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  6. Yes Real Money Trading. So he was selling ISK for $$$. I wonder if he paid income taxes for that business on the side :).

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  7. I'm the Chairman of the Board of Directors for EBANK, one of it's three founders, and I developed the first public version of the software.

    Now that we have that out of the way, I'll give you some things to think about.

    Some of us have spent hundreds of hours working on EBANK code, policies, strategy, and operations. EBANK staff and directors have paid $400 out of pocket for hosting costs. We have completely parallel development environment logically and physically separated from our production environment with versioning control software to manage our updates and upgrades. Some of our people have handed out vouches redeemable for millions of ISK at FanFest. One of our staff was elected to CSM after developing the prototype code for EBANK. We have a person dedicated to auditing with access to everyone's full API. We have processed almost 6 Trillion in withdraws and handled 9 Trillion in deposits. (the difference comes from 1 Trillion in loans being issued and repaid).

    So...after 2 years we had one internal theft. From our CEO and deposit character. And he only stole 9% of our deposit value at a time when we had 2.5 Trillion ISK in deposits. We handled 500 Billion ISK in withdraws within 3 days of the theft. Oh, and the Bank is still solvent.

    You can come to your own conclusions.

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  8. Hexxx: I've made your comment a post here for more visibility:
    http://www.ninveah.com/2009/06/fair-enough.html

    Thanks for commenting.

    ReplyDelete

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