As Intrade Closes Druckenmiller, Paul Tudor Jones May Lose

After online betting company Intrade closed without warning yesterday. The company’s web site put a notice on its front page citing “circumstances,” and making reference to “financial irregularities” that might be uncovered in a coming investigation. Today some of those irregularities were made public in a Financial Times report.

Intrade founder John Delaney received an estimated $2.6 million in payments that had “insufficient documentation” in 2010 and 2011 according to a audit carried out weeks before the closure of the site. The auditors were concerned with “significant financial irregularities” in the company’s accounts.

Intrade operated ostensibly as a prediction market, hoping to improve the...