Jun 10th 2010, 00:33 System Announcement
by Bogart Beck
In Re; SL CapEx Policy - Abandoned Accounts - 06/10/2010
June 10, 2010 – 12:01AM
In Re; SL CapEx Policy - Abandoned Accounts
To: All SL CapEx participants and other interested parties.
From: SL CapEx Board of Directors
There has been some interesting recent dialogue on other Exchanges surrounding the disposition of assets belonging to persons assumed to have abandoned SL and/or the SL Finance Community. While there are clearly differing opinions, the SL CapEx Board of Directors has diligently researched this topic and has determined that “SL CapEx User Accounts” and the “assets” thereof are likely subject to a common law bailment relationship between the account holder and SL CapEx. Ultimately, such relationship therefore obliges SL CapEx to take reasonable precautions to safeguard account holders property held in its trust (ie; both shares and $Lindens). Contrary to a widely held belief within the SL Finance community, generally, this burden of responsibility and potential liability cannot readily be transferred or converted without substantial tortious risk. Further, notwithstanding a bona fide jurisdictional escheatment process, at present there appears to be no legal precedent that would reasonably allow SL CapEx or any other party to simply confiscate, liquidate, transfer or otherwise dispose of presumed abandoned account assets.
Regardless of the fore mentioned, for some time SL CapEx Management has operated with the expectation that a regulatory agency or some other form of legislative mandate will eventually compel purveyors of “virtual currencies” and their constituencies to comply with traditional escheatment practices on either a local or nationalized basis. To that end, SL CapEx Management regularly and routinely audits its member account portfolios using an automated “sweep” subroutine. In instances where the algorithm can reasonably determine that an account has been “abandoned” (our current evaluation criteria assumes that no user initiated account activity within the immediately preceding 24 calendar month period is an abandoned account candidate). The subroutine ultimately flags the account as DORMANT and sweeps the subject assets into an Exchange-Managed Trust Account with appropriate journal entries recorded in the subject account portfolio. While this system is not perfect (yes, it has flagged and swept a few accounts that were not actually abandoned), the audit trail allows us to readily restore a users account to its ACTIVE status and return the assets to the account portfolio on demand.
In our opinion this is the ONLY morally appropriate mechanism available to us (or any other operator) for presumed intestate assets. ANY other attempted conversion of suspect assets is unconscionable and potentially unlawful. Hope that helps your discussion.