Quote:
Originally Posted by DeathAndTaxes
* Strange PS segregated accounts were not frozen. Somehow they didn't have this case of mistaken identity which has struck FTP.
I'm no FTP fan, but PS accounts were segregated and protected, and apparently pretty much always have been, both before their current license and after (as required by their current license). It wasn't a case of mistaken identity, the player funds have never been treated the same.
FTP did not violate any laws or rules by not segregating and protecting their player funds. From a business standpoint, it would have made less sense to completely protect player funds if the online poker environment had been stable and legislated, since the site could use the funds to generate more income. Obviously it's easy to say in hindsight that the market was too volatile to take this risk, but if BF had not occurred, there's no reason to think that FTP wouldn't have continued to process cashouts normally. The combination of frozen funds (including, I believe, player funds) and loss of revenue (along with accounting irregularities - floated and limbo funds) has created a severe liquid asset issue for FTP.
I've seen some people post that they think PS player funds were actually frozen, but AFAIK there's no proof of that, nor do I personally believe it to be true - I think PS paid US players from the segregated and protected player fund accounts.