Why we love EVE (Part infinity)..........

[Mangala]

http://www.massively.com/2009/01/21/eve-online-player-embezzles-over-80-billion-isk-from-dynasty-ban/

The player-driven economy of EVE Online is a major draw for gamers interested in virtual finance, although for very different reasons; some players enjoy managing vast funds in the game, others are primarily in it for a shot at a major heist. Sometimes, even those who start out with the best intentions succumb to temptation. Regardless of the motivations one has to build up (or tear down) something in the game, left up to their own devices, some EVE players aren't simply content with the existing game mechanics when it comes to financial instruments. As such, they've established their own banks, IPOs, and other types of investments.

The more reputable banks and funds have built-in safeguards that limit any one employee's access to the deposited ISK, as -- let's face it -- this is EVE and such contingencies are necessary. More than a few players eye that cache of billions of raw ISK, Blueprint Originals, and other assets, and simply want to pull a runner. This has been the case just this week, with the player-run Dynasty Banking, which was apparently taken for billions of ISK by Xabier, the former Dynasty Investments Manager who had access to funds invested by EVE's playerbase.

Massively contacted Xabier today, who stated that the value of assets taken from Dynasty Banking was 86 billion ISK, adding that the total value is now 106.2 billion ISK due to how it was invested. He also stressed to Massively that he's used some of this ISK to repay his friends who invested with Dynasty Banking. We also spoke with Manalapan, the Chairman of Dynasty Banking, who placed the embezzled amount at 82.5 billion ISK. Manalapan has released a statement in hopes of quelling rumors related to the theft, which comes in the wake of two senior members of Dynasty Banking stepping down from their roles.

Any player-run bank in EVE must consider embezzlement as an operational hazard, and plan accordingly by limiting access to a certain amount of ISK -- and having backup measures in place to cover the amounts lost. Manalapan said, "This ISK lost due to Xabier only effects Dynasty Banking's equity balance, so we still have more than enough assets to cover all deposits and will resume business per usual." His statement seems to indicate that the situation is under control, but there are other options to keep the bank afloat should investors panic and thus cause a further run on the bank.

EBANK, now the largest player-run bank in New Eden, has stated it's willing to assist in the event that this run on Dynasty Banking becomes serious. Ricdic, the Managing Director of EBANK, doesn't believe it will be necessary to provide this assistance, however. He stated earlier today, "From what I have seen after talking to Manalapan it's quite likely EBANK won't need to assist at all but it can't hurt to have that extra backup just in case." The run on the bank has hit 30 billion ISK thus far, but Manalapan remains confident that Dynasty Banking's reserves of roughly 100 billion ISK on hand should be adequate to handle this fallout caused by the theft.

http://www.eurogamer.net/articles/eve-player-runs-off-with-isk-80-billion

Stupidly complicated sci-fi MMO EVE Online is experiencing its very own financial crisis this week after a player ran of with ISK 80 billion.

The player in question, who goes by the name of Xabier, had been employed as an investments manager by player-run Dynasty Banking. His job gave him access to funds invested in the bank by other players.

As reported by Massively.com, Xabier has admitted to running off with ISK 86 billion worth of assets.

The bank's chairman, Manalapan, has issued a statement trying to clear things up.

"I would like to point out that it is still not known for certain whether Xabier has, for lack of a better word, scammed," said Manalapan.

"What we DO know is that he has missed a dividend payment on a personal bond." Oh. "And his bio now states, 'Thanks for all the fish.'" Ah.

Manalapan went on to promise investors that Dynasty Banking will cover the cost of any misdemeanours. "We assure you that we have enough ISK in reserves and, if the situation arises, assets to cover this loss and continue moving forward for the future."

Another player-run firm, EBANK, has offered to help out if things get really tough. "From what I have seen after talking to Manalapan it's quite likely EBANK won't need to assist at all but it can't hurt to have that extra backup just in case," said managing director Ricdic.

[Warcold]

Stupidly complicated sci-fi MMO EVE Online

[Taith]

So what happens to Xabier?

[Mangala]

So what happens to Xabier?

Nothing in so far as GM's/CCP policy - this is totally allowed by the game and the mechanics surrounding it, whether its ethical is another matter

As to how he'll be received by the populace - its not the biggest ripoff ever, so he can move on from it eventually. Or the Dynasty Bank guys find him and get him killed repatedly enough to scare him onto unknown alts

[Taith]

Yes, I assumed any penalty would be purely social.

Is there a bounty system? Failing that, is there a credible way to demonstrate you've killed another player in-game, and as such could a reward of X ISK be offered for each verifiable kill? Because, you know, I'd set one out of spite if it's feasible.

Are there any upsides to being the guy who made off with 80 billion?

[Mangala]

Bounty System - sort of. You can add bounties to someone, and once they are podded (ship killed, pod popped) the killer gets the current bounty. Some people have hundreds of millions of isk on their heads (from jokes and serious business!).  But as for a "Wanted: Dead" type system ala the Old West, not really no.

Way to record kills so payments could be made, most pvp types in eve have a killboard they can use for example I am here on MAADI's KB:

http://www.handsofjustice.co.uk/maadikb/?a=pilot_detail&plt_id=39011

and more publically, I am here on Battleclinics KB (This is a massive public one, covers alot of the playerbase directly and indirectly):

http://www.battleclinic.com/eve_online/pk/view.php?type=player&name=Mangala+Solaris

So people using KB's as a way to prove kills would work out ok in this regard.

==========

As to the 80bill?

Can buy his own titan and officer fit it.  Could buy and fit 2 Motherships (Officer again). Buy and fit 40 or so Carriers. Many Many months of gametime for his main and his alts. Fit a huge number of T2 ships with T2 gear and insure them all, then give them a corp full of pvpers to go have a huge amount of fun with, until the money goes away

Basically he has reduced alot of the risk there is in eve, any losses he takes will not really make a huge dent in that wallet sum for a long time.

[Warcold]

He can also give most of the money to one of his other chars, one that nobody knows off it's the same guy behind the comp. A year or whatever later, when most ppl have forgotten about this heist, he can give this char a go again 

[Taith]

I was wondering about laundering via alts. I guess you could only track the money with the help of the game developers, which I assume they won't offer. So basically, the money's gone and someone somewhere will mysteriously have an uber-battleship in a few months time when construction is complete.

Thanks guys, fascinating stuff.

[Rubino]

The best option for laundering money in eve is via the PLEX or GTC market.
It's one of the hardest things for CCP to actually take back.

[Taith]

I'm afraid I don't know what any of those abbreviations are.

[Rubino]

PLEX & GTC (Game Time Cards) is a way to extending game time.  You can buy them with real cash and sell them in game, or buy them in-game with in-game currency.
CCP is the name of the company that owns Eve.

[Caradir]

Pilot Licence EXtension, replaced the Game Time Cards that were previously used by CHINESE GOLD SELLERS to launder Billions of isk into Real Life cash

[Rubino]

The 60d GTC's still exist - only the 30/90d ones got ditched.  I'm not sure how or if it's changed anything regarding laundering - the Cash/ISK conversion is one way - from the outside to inside.
Way before plex's the problem was that transfer of GTC's wasn't done in a secure way - which left itself open to scamming.
They would send you a GTC code via eve-mail and you would transfer the ISK to them once you had entered it and it was verfied. 
Now, with the secure delivery of GTC's via the Eve-O site - the scamming has been reduced to 0.

It could have be used for converting ISK to cash if you collected the GTC's, trusted that they worked and then sold the GTC via a website.  But that left the launderer open to risk of scamming.  I doubt if it was used for laundering. 

The main reason why Plex/GTC's cause a problem is that if somebody bought something from CCP (or their agent) for RL Cash - which was then purchased for in-game cash.  If the ISK was tainted - CCP can't easily revoke the ISK. 

I would guess now the ISK laundering would just go the Cash -> in-game items approach - allowing you to buy things via a website for delivery in-game.  Far harder to trace with 3 information streams to cover (Market, Contracts and direct-trades).

The recent patch allows people to buy a 30 day PLEX with a CC from CCP.  Interesting because the implementation allows CCP (or their agents) to sell items out-of-game for RL cash for immediate delivery in-game.