L$ Exchange news 2013-20

The Linden Dollar Exchanges were demanding the ToS 30 day grace period and staying open. Now the Lab is kicking them out and closing them down. So, much for ToS and the 30-day grace.

ToSThis Agreement may be changed by Linden Lab effective immediately by notifying you as provided in Section 13.4 below; provided that Material Changes will become effective thirty (30) days after such notification. By continuing to access or use Second Life after the effective date of any such change, you agree to be bound by the modified Terms of Service. A “Material Change” is a change to this Agreement which reduces your contractual rights or increases your responsibilities under this Agreement in a significant manner.

13.4 We agree to provide each other with notices in a specified manner.
Linden Lab may give notice to and obtain consent from you by one or more of the following means: through the website at http://secondlife.com, through the Second Life Viewer at or after log-in to your Account, by electronic mail to your e-mail address in our records, or by written mail communication to the address on record for your Account. All notices given by you or required under this Agreement shall be faxed to Linden Lab Legal Department at: (415) 243-9045; or mailed to us at: Linden Lab Legal Department, 945 Battery Street, San Francisco, CA 94111.

So, does this leave room for a lawsuit? Ask an attorney.

Podex CEO Jacek Shuftan told Hypergrid Business reporter Maria Korolov:

I really believed that the new Terms of Service is meant to protect avatars from the risk of fraud. That was my goal as well so I was looking forward to cooperate with Linden Lab. I could not imagine that over one night they would want to destroy our cooperation and everything what I built for 6 years of my virtual life. They did. I believed that they would answer my requests to start discussion. They did not.

Even the AnsheX is closed.

Now exchanges are looking at how to provide their services without violating the Lab’s ToS. Xchange4LS thinks they have found a way to abide by the ToS and exchange L$. Time will tell. For now they aren’t saying much, other than they are busy implementing it.

Maria reports that while some are being kicked out, others already shut down are getting emails that offer some encouragement. A quote from the letter as reported on HB:

“We have approached several organizations to discuss a potential solution that would allow them to serve their customers within the bounds of the updated Second Life Terms of Service. We’ll soon blog to share more information about this solution, which we plan to extend more broadly as well.”


There is speculation this is all a planned move to make the exchanges worthless and allow the Lab to purchase them at fire sale prices. This would keep the European and other foreign users but, bring the cash flow into the Lab.

That sounds pretty crafty. May be more so than the Lab is capable of… but, we can’t know either way. I’m not giving much cred to this rumor.

For now we are all waiting and watching.

2 thoughts on “L$ Exchange news 2013-20

  1. LL may have invoked the “We may suspend or terminate your Account if we determine in our discretion that such action is necessary or advisable to comply with legal requirements or protect the rights or interests of Linden Lab” clause, but I have a really hard time coming up with a credible explanation for why they suddenly arrived at that conclusion overnight, mandating instant (legal) action against *all* exchanges.

    • From Hypergrid Business we know that some exchange owners complained about those still operating.

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