Linden Lab to Sell Tilia

 

In a press release on Tuesday April 23, Thunes announced it was buying the Tilia virtual currency exchange service from Linden Lab. 

To accelerate its growth in the United States and its presence in the fast-expanding online gaming market, Thunes, a global cross-border payments company, is proud to announce that it signed a definitive agreement to acquire Tilia LLC, an all-in-one payments platform. Tilia is licensed in 48 U.S. states and territories and offers payment solutions (acceptance and pay-outs) for online games, virtual worlds, creator economies, and in-app purchases.

Upon closing of the transaction, which is subject to regulatory approvals, Thunes’ bespoke global network to accept and pay in real-time through four billion bank accounts, three billion digital wallets and 550 Alternative Payment Methods (APMs) will become available to merchants across the United States, including current Tilia customers. Using Tilia’s technology, Thunes will be able to offer Visa, MasterCard, American Express, JCB and UnionPay acceptance to Thunes’ customers.

As part of the transaction, Thunes and Linden Research, Inc. (“Linden Lab”), the current majority owner of Tilia, have agreed to an exclusive five-year partnership in which, post closing, Thunes will provide payment processing and pay-outs to Linden Lab, leveraging Thunes’ global network – allowing gamers to pay, and to receive money real-time, in a more cost-efficient way and with increased transparency.

The press release quoted Thunes' CEO  Flores de Kort, “The acquisition of Tilia demonstrates our ambition in the United States. This investment will enable us to leverage Tilia’s capabilities to provide merchants with direct money movement solutions in and out of the United States. Furthermore, Tilia’s deep expertise in online gaming, virtual worlds and token-based payments will greatly accelerate our growth into that fast-growing, exciting industry.”

Linden Lab's Executive Chairman, Brad Oberwager, was quoted as saying, “Thunes is an exceptional company that directly connects nearly every payment method and market worldwide. The combination of Tilia and Thunes will give Linden Lab’s customers more payment choices, and the ability to receive pay-outs in real time, anywhere, into the wallet or bank account of their choice. It will be business as usual for our people and our customers as we bring Tilia and Thunes together.”

 

Tilia was quietly bought by Linden Lab in 2015, but was quiet about it's purpose until 2019 when it was announced that it would be taking over currency exchanges, and people selling Lindens to buy real-life currency would have to register with it, saying this was necessary due to new Government regulations. It would also be used to buy and sell Sansar currency, which at the time was owned by Linden Lab. Eventually Sansar would be sold, but Tilia would continue to handle it's transactions, and make deals with other virtual platforms such as Upland to handle theirs. When Linden Lab was bought by the Oberwager Group in 2020, it was believed Tilia was part of what attracted them. In 2022, Linden Lab announced JP Morgan was making a "strategic investment" in Tilia. 

There is a thread in the Second Life forums about the sale it Tilia (here). Linden Lab would state, "This is good news for Second Life residents and creators. More options without additional costs. We are having an open meeting on May 20 and can discuss in detail."

 

Hat tip: Daniel Voyager

Bixyl Shuftan

A Double Sim Move in the Sunweaver Estates

Changes are coming to the Newser's neighborhood, the Sunweaver Estates. Two major landowners, Cynthia Farshore and Nydia Tungsten, will be swapping sims and moving their structures of Farshore Field Airport and Mouse Hole Manor. I had a few words with both Cynthia and Nydia about the move. While moving the properties is a lot of work, there are reasons for it. Plus, the moving and reconstruction allows for some new possibilities.

Read the story in Extra.

Linden Lab Annouces Hike in Paypal/Skrill Transaction Fees, "Faster Credit Processing"

For those who use Paypal or Skrill to buy their virtual currency from Linden Lab, their fees are going to go up. On Monday, it was announced in the official Second Life blog that there would be some "Upcoming changes to fees" starting on April 5.

In addition to taking time, processing credit and paying real money to users’ PayPal and Skrill accounts incurs costs to Linden Lab. Each transaction actually costs us more than the $1 (USD) fee we have been charging. To address that and in light of the significant investments we’ve made to improve the related systems and processes, we will be making some adjustments to the fee structure, beginning next month.
 
As of April 5, 2016, instead of charging a flat fee of $1 (USD) per transaction, we will charge a fee of 1.5% of the transaction value, with a minimum fee of $3 (USD) and a maximum of $15 (USD). Additionally, the fee for purchasing L$ on the LindeX will increase 10¢, from $0.30 (USD) to $0.40 (USD) per transaction.

But it wasn't all bad news. Linden Lab stated it has been making some changes to how transactions of money is made. So people will be able to sell Linden dollars for real-life currency from the Lab at a faster time. The Lab is saying most of their purchases of Linden dollars for real ones will be completed within two days, though some will take longer.

We’re happy to announce that we will significantly improve how quickly we’re able to process a majority of credit requests. Based on current data, we estimate that the upgrades we’ve made will allow approximately 75% of process credit requests to be completed within 2 business days. 
 
For a minority of requests, the process may still take 5 business days. Because we’re dealing with sending real money to users around the world, we may require additional information and perform other processes that could impact the time needed. A good rule of thumb is that the better we know you as a customer, the more likely it is we’ll be able to quickly process your credit requests.

On the SL Universe forums, one store owner mentioned getting an email from Linden Lab asking about their source of income. It was suggested the email was related to the changes in how transactions are carried out, though there was no way to confirm it.

To read the blog post in it's entirety, Click here.

Podex Art Gallery

By Gemma Cleanslate

 

Podex Exchange is one of our SL Newser sponsors who provides residents a banking opportunity within Second Life. Now there is a new aspect to their Second Life presence. Since Jacek Shuftan the owner of Podex is an afficianado or art in real life and Second Life, there is an art gallery which opened in April within their exchange building. 

 

 Their statement: “Podex Art Gallery is a non-profit project aimed at promoting creativity of Second Life Residents. Our goal is to bring together various art tendencies to showcase the diversity of Second Life art. The three-floor gallery building features both permanent and temporary exhibitions and allows you to sample the diverse talents not only of creators already recognized for their work but also of those who have just entered the scene of Second Life art.“

 

I went to visit the permanent and the temporary collections in the Coda Region. There are so many wonderful pieces in both exhibits, some by artists I know well and also some I have not encountered before. The lower level of the gallery has exquisite art that for the most part is the permanent collection . Here are  wonderful pieces there that will remain. On the upper floor of the main building, at this time is a retrospective of the art of Asmita Duranhaya that is enchanting. She has numerous  pieces that delight the viewer, many of which have movement within them. Sit down and enjoy each one.

 

Across way there is a separate area of  building called “Polish Art” that can be reached from either floor. Presently on  the lower level is an exhibit of the vibrant art of Leev Turbo. Wonderful dragons and magical monoliths are scattered about the room. Above on the next level Deso Ersetu has many of his gothic sculptures on display on the upper level. They remind one of stories of  ancient times. Take a close look. I talked with Kika Eel who is the curator of the gallery and she told me that they are going to be adding to the permanent collection in time and the temporary exhibits will remain for a while. She will be arranging  for temporary artists both new and old in sl. “We are constantly searching for new pieces and new artists. We would like to encourage all those amazing and talented people out there to showcase their work. To make themselves visible.“
 

You can check out more information on the exhibits at http://www.gallery.podex.info/ . Keep this as a reference but do go and visit the exhibits !!! It is all for your pleasure. 
http://maps.secondlife.com/secondlife/Coda/47/226/62

 

Gemma Cleanslate

The Third-Party Linden Exchange Services Two Months Later

It's been about two months since the Linden Exchanger Crisis in which Linden Lab briefly closed down the Third-Party Exchange Services. The result from the residents was an uproar, especially from non-US residents as they often had problems buying Lindens directly from Linden Lab. Most exchangers folded when the Lindens demanded they shut down. But one, the Podex Exchange, instead tried to reason with the Lindens. It was ignored and then shut down by force. Eventually, Linden Lab partially relented, allowing the exchangers to apply for approval as Third-Party "Linden Resellers." After a few weeks, Podex was back in business.

There were concerns that the market would be dominated by Linden resellers that were subsidiaries of real estate businesses, thinking they'd be able to offer the best deals. But this has not been the case. Of the top five exchangers on the Linden Dollar Authorized Reseller Program website, only one was known for it's sales of virtual property. AnsheX, the most well known, never even made the top ten.

In terms of Euros per 1000 Lindens, the top three exchangers were The Teledollar Cash Service, The Podex Exchange, and the ELDEXchange. Teledollar made the top of the list at 3.34 Euros needed to buy 1000 Lindens. Podex was second at 3.40 Euros. But, Teledollar only did business with US Dollars and Euros. The Podex Exchange worked with those and more, British Pounds, Japanese Yen, Russian Rubles, and more. Recently, they have began accepting Mexican and Colombian Pesos and Peruvian Nuevo Sols.

Podex also offer many more payment options, from Paypall, to credit card, bank transfer, and more.

So despite it's rough treatment from Linden Lab earlier, Podex is alive and well, and offering it's customers good deals.

Podex is a sponsor of Second Life Newser.

Bixyl Shuftan

List of Authorized Linden Sellers Expanded, Podex Back in Business

By Bixyl Shuftan

Almost a month after Linden Lab sparked a crisis by changing their terms of service to shut down Third-Party Linden exchangers, and over two weeks since an initial five "Linden Resellers" were authorized to do business, the list of companies residents can buy Lindens from has been noticeably extended. It's possible to once again possible to do business with many of those who shut their doors, or in the case of Podex had the doors shut for them despite repeated attempts to negotiate with the Lab. Podex is among the exchangers now back in business as "Authorized Linden Resellers."

"We are very happy to announce that Podex has been given permission to sell Linden dollars as a member of the Authorized Reseller Program" Jacek Shuftan stated on the Podex Website, "All our clients are welcome to buy Linden Dollars again."

Besides getting it's main source of business in Second Life back, the Podex Exchange has also made a deal with the OpenSim world "Virtual Highway." On this world which recently passed the landmark of one thousand registered users, Podex now offers business buying and selling Virtual Highway Dollars (V$) in addition to Visa cards and the "possibility to earn your own profit in our affiliate program."

Not all of the Third-Party Exchangers have been allowed to return to business yet. Some, such as Moneyslex and the Brando Estate's exchange service are still closed. But for the customers of many once-closed exchangers, their bank is back in business.

The Podex Exchange (http://www.podex.info/) is a sponsor of Second Life Newser.


Sources: Second Life Wiki, Hypergrid Business

Bixyl Shuftan

Third-Party Exchanger Update: No Additional Authorized Linden Resellers

It's been about a week since the last of the Third-Party Linden Exchangers were closed. AnsheX, owned by SL tycoon Anshe Chung, quietly ceased trading. Podex, owned and operated by Jacek Shuftan, was shut down when Jacek's account was suspended by Linden Lab. On the same day, the Lab announced it's new terms for "Authorized Linden Resellers." Of the many exchangers that had once been operating, only five had been approved for the new plan. Among them was AnsheX.

A couple days ago, Jacek's suspension was finally lifted. He however had not gotten a response from Linden Lab concerning his application to continue trading Lindens. And now about a week after Linden Lab's last announcement, the list of five allowed resellers remains at five.

It's unclear why no additional new Linden Resellers have been authorized.

Bixyl Shuftan.

Linden Lab to Allow Several Third-Party Exchange Services to Reopen, Podex Still Closed.

In a partial reversal of it's earlier ban, Linden Lab announced earlier today that they will be allowing Third-Party Linden exchange services after all. But so far, only five of the many exchangers have met their approval. Plus, the services now operate under tighter and more limiting terms and conditions.

Now, to give users more options and make it easier to purchase L$, we’re launching a pilot program of Authorized Resellers of L$. These sites are authorized by Linden Lab to purchase L$ on the LindeX and then resell those L$ using a variety of international currencies and payment methods. To be clear: per the Terms of Service, these resellers will not be allowed to purchase L$ outside of the LindeX (i.e. they will not be able to buy L$ back from users and cash people out). The list of Authorized Resellers participating in the pilot program is available here.

So far, only five exchange services, now officially called Linden Resellers,  have been approved by Linden Lab. They are AnsheX, Buildo, vForEx, VirWoX, and ZoHaIslands. As of the writing of this article, only two had operational ATMs, Bulido and ZoHa. ZoHa announced the news on their blog, "We are proud to announce that ZoHa Islands became today an Authorized Reseller of Linden Dollars," followed by a short description of what this means and the conditions.

The Podex Exchange, which was shut down early Friday morning, was not among the approved exchange services. On the Podex site, Jacek announced they had applied to become an official reseller, but were still stopped from doing business. On "Hypergrid Business," he stated, "Undoubtfully, it is a great news for residents who are not able to use Linden Lab payment methods. ... It will lower the profits of independent exchanges but gives a sparkle of hope that we can continue our virtual existence."

The new terms and conditions are more limiting for the exchange services than before. From now on, they can only get their Linden Dollars from the official LindeX Exchange, and nowhere else. They can no longer buy back Lindens from residents for US dollars or any other currency.

These new terms mean Linden Lab now has a more tighter rein on where it's Linden dollars go. It's very likely they were made with the US Treasury Department's FinCEN (Financial Crimes Enforcement Network) new guidelines about virtual currency in mind. Other conditions include resellers taking steps to "take commercially reasonable steps to prevent and deter credit card and similar types of fraud." They're also required to make sure no business is done with or anyone from any country with which the United States has an embargo with, such as Cuba or Iran.

The new terms have one serious weakness. With residents unable to sell Lindens to anyone but the Lab, Second Life business owners dependent on Third-Party exchangers to convert Lindens to real currency are still out of luck. It's possible that there may be changes in the terms and conditions in the near future to allow this.

So why didn't Linden Lab offer something like this earlier? A few residents in forum threads and article comments thought the Lab was genuinely surprised by how many expressed anger at the move and how many were dependent on the Third Party Exchanges. Other posters expressed suspicion that all this was really about FinCEN, feeling profit was their main motive, noting everyone would have to use LindeX, including the resellers, one poster on SL Universe commenting, "This is a brilliant plan to let Anshe stay in business … ACS and the other land barons have all this L$ they get directly they can sell. Everyone else has to buy it on the Lindex, mark it up, and resell it."

Residents are breathing a sigh of relief, but Linden Lab has once again shaken the confidence of Second Life's users.

The Podex Exchange (http://www.podex.info/) is a sponsor of Second Life Newser.

Links:  Official forums, SL Universe forums, Gwyneth Llewelyn,  Hypergrid Business, New World Notes,  Hamlet Au,

Bixyl Shuftan

Most Third-Party Linden Exchange Services Close, Only Podex and AnsheX Remain

By Bixyl Shuftan

In the aftermath of Linden Labs changing it's Terms of Service concerning Third Party exchangers of Linden dollars, just about all have closed their doors. A number gave statements saying they  were wary of the Lab's wrath, such as the DX Exchange, "the TOS gives us a 30 day period … However, we so realize that with blocking our avatars Linden Lab can disable our business within seconds. We also realize that we put our clients at risk to lose their Lindens in case we annoy Linden Lab." CrossWorlds stated that they would complete orders that had already been placed. But most were no longer making new transactions.

Two Third-Party exchange services remain. One is AnsheX, owned by noted Second Life baron Anshe Chung. Their only response from them on the matter was reportedly their support staff saying "nothing has changed" and they were buying and selling Lindens as before. The other is the Podex Exchange, owned and run by Jacek Shuftan. Jacek lives in Poland in real life, but has registered Podex as a business in Delaware USA. In a press statement over the weekend, Podex stated the following:

Despite the dark clouds over independent third party exchanges, Podex Exchange continues its normal work selling and buying L$. The only change is stricter security policy which can cause delays with some transactions. We are sorry for it. We also want to assure our clients that not only their real money and linden dollars are save with us but also their personal data. Our policy of not requiring any registration to use Podex services have always guaranteed maximum security. We just have nothing to be stolen. To remain in total compliance with Linden Lab regulations and The Financial Crimes Enforcement Network (“FinCEN”) guidance our legal office started preparing application process to become officially registered money services business (MSB).

So why did Linden Lab change their terms of service? In his "Modern Payment Systems" blog, Alex Kadochnikov stated as an issuer of virtual currency, Linden Lab had to register with the Financial Crimes Enforcement Network (FinCEN). The penalties of not registering, were listed as pretty steep.

(a) Whoever knowingly conducts, controls, manages, supervises, directs, or owns all or part of an unlicensed money transmitting business, shall be fined in accordance with this title or imprisoned not more than 5 years, or both.

But would Linden Lab really have gotten in trouble because of unregistered Third-Party exchangers? It seems they're not taking chances. In the comments following his article, Kadochinikov didn't feel all the panic was necessary, "I really do not know why they (won't) just register and spend a few dollars in compliance with regulations." Hamlet Au expressed puzzlement as to why "the company hasn't specified this is the reason for it's policy change." A reader commented that the Lab doesn't normally explain things to the residents these days, "the company has abandoned any pretense at communicating with actual customers, so it may just be their usual stony silence."

Perhaps as time goes on, more Third-Party exchangers will register in compliance with FinCEN. But for now, two exchangers independent of Linden Lab remain open for business as an alternative to LindeX. So residents unable to get Lindens from the Lab still have two alternatives. And those reluctant to deal with Anshe Chung still have Podex.

The Podex Exchange (http://www.podex.info/) is a sponsor of Second Life Newser.

Sources: Google sites, Money Payment Systems,

Bixyl Shuftan

Announcement From Podex

Despite the dark clouds over independent third party exchanges, Podex Exchange continues its normal work selling and buying L$. The only change is stricter security policy which can cause delays with some transactions. We are sorry for it.

We also want to assure our clients that not only their real money and linden dollars are save with us but also their personal data. Our policy of not requiring any registration to use Podex services have always guaranteed maximum security. We just have nothing to be stolen.

To remain in total compliance with Linden Lab regulations and The Financial Crimes Enforcement Network (“FinCEN”) guidance our legal office started preparing application process to become officially registered money services business (MSB).

Jacek Shuftan, Podex Exchange

New Terms of Service Could End Third-Party Linden Exchange Services, Leave Many Non-US Residents Without Means To Buy Lindens

By Bixyl Shuftan

On Tuesday, Linden Lab announced in their blog they were updating their Terms of Service. Normally, it's just some small details. But the latest change could mean the biggest change to Second Life's economy since the gambling ban years ago.

To get Linden dollars, one could always get them from Linden Lab, the process done through it's Linden Exchange or LindeX. But they are far from the only means for residents to get Lindens. Other exchange services, or Third-Party exchange services, have sprung up over time, offering residents easier and quicker means to get virtual cash.

In the old Terms of Service, Section 5.3 read as the following:

There are other Linden dollar exchanges that are operated by third parties. Linden dollars are occasionally Bought and Sold on third party exchanges, which are wholly distinct from the LindeX exchange. Unless specified by Linden Lab, these exchanges have no affiliation with Linden Lab. We do not guarantee the legitimacy of the Linden dollar transfers offered on them, and we are not liable for purchases of such Linden dollars. You purchase Linden dollars from such sites at your own risk. If you Buy Linden dollars that are traced to unauthorized credit card activity or other fraudulent activity, we will recoup these Linden dollars from your Account.

In the new Terms of Service. Section 5.3 deals with new rules concerning third-party exchange services.

Third party exchanges are not authorized by Linden Lab and Buying or Selling Linden dollars on third party exchanges are not authorized transactions. Third party exchanges are wholly distinct from both the LindeX exchange and Linden Lab and they have no affiliation with Linden Lab. We do not endorse or otherwise guarantee the legitimacy of the Linden dollar transfers offered on them, and we are not liable for purchases of such Linden dollars. Buying or Selling Linden dollars anywhere other than the LindeX is done so solely at your own risk. If you Buy Linden dollars that are traced to unauthorized credit card activity or other fraudulent activity, we will recoup these Linden dollars from your Account. The only authorized exchange is the LindeX.

There were numerous comments from the articles on New World Notes and Vaki Zenova's Blog, in addition to the SL Universe Forum and the official forums. The response was virtually 100% negative, with many residents expressing anger. Some were confused at first wondering if the Lab was just not accepting further responsibility for Third-Party Exchanges, then word began going around that they would be clearly not allowed. There were two issues of complaint. One was that LindeX didn't give you your Lindens instantly, but could take a week or more to pay up. But the bigger issue was the ability to get Lindens at all. A number of residents outside the United States complained using the LindeX was difficult or just couldn't be done. The end of Third Party Exchangers would mean the end of their buying Lindens. For those with no job on the Grid, no more shopping beyond freebies, and no more paying tier or rent for land.

The reaction by the Third-Party Exchange Services varied. Many of them have shut down trading in Second Life. VirWoX, popular among Europeans, stated the following:

Linden Lab has recently changed their Terms of Service. Under the new rules, we will no longer be able to offer our service to Second Life residents. Linden Lab insists that our in-world terminals (ATMs) have to be removed. This means that we can currently not accept Linden Dollars from Second Life or pay Linden Dollars to Second Life. Other virtual currencies are not affected. We will post updates here as the situation develops. Please refrain from sending us support messages about this issue, at the moment we will not be able to give you more information.

Other Exchanges are still operating. This includes the Podex Exchange, Jacek Shuftan told Hypergrid Business, he intended to continue trading for the thirty days until the new Terms of Service go in effect, "We find it not fair to stop our activity in one day without prior notice to our customers. … Podex Exchange has built trust and reputation for many years, and we are not going to destroy it in one day."


I met up with Jacek, who had more to say on the matter, "Really strange move of LL. … I really do not understand (their) motives. We are all waiting for (the) official statement as (the) ToS does not forbid Ls exchange, but (the) post on (the) blog does." He stated As first the blog post didn't ban them, but it was soon edited so it stated there was a ban.

Jacek felt Linden Lab would lose a *lot* of income over their move, "my clients, mainly from Europe, tell me if they cannot buy from me or other exchanges, they will not be able to buy at all. They use prepaid cards, or just send money to bank accounts, or by SMS." Jacek felt if profit was the main motive of the Lab, they could still have allowed alternative payment methods that weren't competitive with Lindex. He was wondering if another reason, if not the main one, was pressure by the US Department of the Treasury with their issuing of "guidelines" about virtual currency, "We just do not know, and we are all waiting for an explanation, and a way to find a sensible solution."

The following day, Gemma Cleanslate reported that a Podex ATM at a multi-exchange hub wasn't working.  The ones in the Podex main office at Coda worked normally.

More to come on what is clearly a major change to the Second Life economy.

The Podex Exchange (http://www.podex.info/) is a sponsor of Second Life Newser.

Sources and other articles, Inkline Media, Hypergrid Business, SL Universe, New World Notes, Official Linden Forum (LindeX Has No Instant Cashout), Ciaran Laval (ToS) (3rd Party Fallout), Modem World,

Bixyl Shuftan

New Podex Location

The Podex Exchange has moved. They recently moved to a new and larger office building. They now can be found in the Coda sim at (45, 218, 61).

Podex Exchange, sometimes called the Podex bank, exchanges Lindens for several world currencies. They are a sponsor of Second Life Newser.

SL Video: "Podex Exchange"

"The commercial of Podex Exchange - official Linden Lab reseller of lindens. Visit our web page to buy, sell and exchange linden dollars. Thousands of satisfied customers can not be wrong! http://www.podex.info/ "

SL Video: "How You Can Buy Lindens in Second Life "

From Jacek Shuftan and Salivan Mubble, "Short video manual how you can buy lindens ( LS) - the official currency of Second Life on LindeX and in Podex Exchange http://www.podex.info. " Podex actually charges less than Linden Lab for Lindens.

The Podex Exchange is a sponsor for Second Life Newspaper.