The BBC reports
A 22-year-old gamer has spent $26,500 (£13,700) on an island that exists only in a computer role-playing game (RPG). The Australian gamer, known only by his gaming moniker Deathifier, bought the island in an online auction. The land exists within the game Project Entropia, an RPG which allows thousands of players to interact with each other.
Eighty years ago when people sold land in Florida that didn't exist, we put them in jail. Now we give them venture capital. This is progress!
(Kidding aside, it is either lunacy or a graphic demonstration that Dan Hunter is right about the coming value of virtual property.)