As expected, our reserve of 7.5M has been drained.  We had to disable withdrawals via the ATM in order to help us build up a larger cash reserve.  As of this writing, we have paid out an additional 1.5M via Moneybookers , and have approximately an additional 1M to pay out before our reserve there is drained.  We are also bringing in about 2.5M to our Paypal account, which we feel will arrive by the end of next week, and will post a notice to offer Paypal withdrawals then.  Unfortunately, that is all that we can liquidate at this time.  Within the last 72hours, we have paid out 8M and will continue to do so as liquidity is achieved.  We are hoping to be able to liquidate an additional 2-4M next week, and will most likely offer withdrawals via Paypal since it will take a much longer time to purchase L$.  There is also a possibility that we may be able to liquidate an additional 8-10M by the end of next week, but the possibility of that is unclear and we would rather not depend on that at this time. 

If you have any questions that have not been addressed, please send me an IM (which will be queued in my email) and I will answer and post them in our next update.  No updates will be posted until Monday as we take some time off over the weekends to think of some alternate strategy to alleviate the strain on our cashflow.  Here are some questions that have been asked multiple times, so we’ll try to address them here so that we can direct anyone with the same questions to this update:

When can I withdraw from the ATM again?
We honestly do not have an answer.  The only way for us to obtain more L$ is to purchase them via LindenX or SLX at a fair rate via Paypal.  However, I’m pretty sure that any funds we bring into Paypal will all be paid out immediately for withdrawal requests.  So my honest answer would be that if you need your funds faster, to use Paypal or Moneybookers as the withdrawal method when funds are available.

From an announcement at Ancapex.net

 Brautigan Guests on Metanomics

ACE Chair IntLibber Brautigan was a guest on the SLCN.tv program Metanomics, hosted by Beyers Sellers (Professor Robert Bloomfield of Cornell U) today in a special episode covering the new LL Banking Rule.

Other guests included Jillian Barth (Jillian Sayuri Falconi) of Saxo Bank, who hosted the show in the Saxo Bank sim, Travis Ristow of BCX Bank, Benjamin Djuranske of the SL Bar Association, and David Talbot of Technology Review, who wrote a rather sensationalistic story about the victims of the collapse of Ginko Financial, and is credited/blamed for the current LL policy.

Talbot started off by displaying a surprising lack of knowledge about Ginko in general. Discussion moved on to Benjamin Djuranske making a number of inflammatory, hyperbolic and factually unsupported statements which were quickly doused with facts from Travis Ristow and IntLibber. Spectators called the blow-by-blow on the Metanomics group backchat.

It was noted that its unreasonable for LL to insist on bank charters for paying interest on what LL insists is not really money, but a licensed product.

IntLibber went on to talk about how any standard of "sustainable interest" has to be founded in the context of the local SL economy, which grew at 1000% last year.

You can watch the show at SLCN

We will try to post a daily update so that we can assure our customers of what is going on.  Yesterday, we opened our ATM at around 1pm SLT with approximately 7.5M in reserve.  As of this writing, we are now down to 2.7M.  We have already liquidated an additional 3M that can be withdrawn now outside of Second Life.  You can read here for more information.   We have also liquidated an additional 3M which we will be bringing into our Paypal account.  We expect the funds to be available in Paypal by the end of next week, and will begin processing withdrawals directly via Paypal.

Unfortunately, our LLC was not accepted by LL as an appropriate document, which we expected.  We have asked them for an extension, so let's hope they'll at least offer us that. 

As we have promised, we will be posting our financial and investments in order to help assure our customers that we will continue to be profitable during this difficult time:

Total Remaining Investment Assets: ~$175,000 USD
Investment Profits for 1/10: $1714 USD

 **As always, we are willing to provide proof of investments and profits to any individual or entity willing to sign and send a notarized NDA with 3 copies of their ID.