Quote:
Originally Posted by grant2
From a creditor-liability perspective, it depends on the laws of the jurisdiction. Most jurisdictions would have customer obligations near the top of the list should liquidation be ordered.
To expound on the liability portion:
Many industries require (a) auditing and (b) insurance to protect consumers against business failure & malfeasance, even if assets are consumed:
- Lawyers, Accountants, financial advisors have E&O insurance
- Banks have FDIC
- Brokers have SIPC
Online poker companies, of course, don't like to get audited and don't buy insurance for the obvious reasons: insurance costs money, and audits reduce the ability to shell-game customers' funds.