Asset Creation, Seclusion And Money Laundering In The Virtual World

From Virtual Currency to Hard Cash

The majority of current MMPORGs are designed to allow for gamers to build up their digital persona, or 'Avatars,' in the virtual society by various acts, including the earning of virtual currency. This can be accomplished through the offering of virtual goods or services to others in the digital world and is, therefore, much like that of a real world society. For years, gamers have been selling their digital monies, goods or property for real-world compensation on auction sites such as eBay. Likewise, virtual entrepreneurs are starting and maintaining successful business ventures in the various MMPORGs. An example is Jon Jacobs, who spent $100,000, which comprised arguably his entire net worth at the time, to purchase a digital space station in the game Entropia Universe. Since his purchase, he has generated income of approximately $12,000 a month by selling residential and commercial real estate on the station, and by imposing taxes on specific activities engaged in by other players thereon. In this instance, by imposing taxes, it would appear that Mr. Jacobs has taken on the position of a quasi-governmental agency, which in itself raises issues beyond the scope of this article. Moreover, the grand opening of the space station nightclub 'Neverdie,' and the profits obtained from mining/hunting rights and property sales on the station is expected to put Jacobs' net worth at $1.5 million dollars (U.S.), making him the first ever virtual-world millionaire. Likewise, the Avatar named Anshe Chung, whose real-world counterpart keeps her name secret for privacy reasons, is referred to by some as the virtual Donald Trump. In the game Second Life, she charges players 'Linden Dollars' (worth approximately 250 to the real dollar) to rent or buy her virtual homesteads. The value of her synthetic real estate holdings is estimated at approximately $250,000 in hard cash. These are just two examples of people who are leaving the real world and taking up permanent financial and social residence in the virtual world.