REPORT: Intrade Set To Offer Frozen Account Holders 50% Of Their Money

IntradeBloomberg's Joe Brennan is reporting that Intrade will pitch a "survival plan" to clients that would include a 50 percent payback to those with frozen accounts.

If the online betting website can find a new investment, then it would return all of the customer funds.

According to Brennan's source, less than $2.5 million of customer funds would be at risk under the plan.

In March, Intrade was shut down following the uncovering of accounting irregularities related to payments to deceased former CEO John Delaney in 2011.

In November, the company was dealt a lawsuit from the CFTC, the U.S. commodities and futures trading regulator. The lawsuit alleged that Intrade had violated rules by allowing customers to trade commodities and soliciting them to buy options.