The SEC documentation suggests that the funds may have ALWAYS been pooled. Look at how few frozen accounts there are. If the assets are segregated there should be hundreds of accounts. I suspect this was mismanaged from the beginning.For early sites that were truly purchased with segregated funds and ownership recognized, I think those owners might have a chance at retention. But sites that were in fact purchased with pooled funds...that is pooled assets...became...pooled assets. Most likely they will remain pooled assets and sold for the benefit of the estate...where those pooled assets will be available for most site owners with worthless websites and distributed as part of any limited recovery.
If that happens it is really going to be a boon to the people who would otherwise have lost a full 6 figures and have literally nothing to show for it other than a few $1500 payments. What happens though if one of those early investors had bad fortune and has no ability to repay? It just seems... wrong... to hold them accountable.Oh boy, this will really screw those early adopters who said this was the greatest thing since sliced bread. Now imagine the SEC coming after you and asking for $56,000 you received over the last 3 years.
Also IF they decide to sell all the sites, who does the work? Those people will probably be relatively high rate individuals drawing from an already strained pool of money. There are loads and loads of websites and properly transferring those assets takes a lot of time for the seller and it takes LOADS of time for the buyer if done right. Also surely IS has sites that have no "owners". The process will probably take more than a year and during that time hosting and domain registration costs will need to be paid. Every site without ops staff will quickly become worthless. For a large percentage of sites I'd bet the most prudent action would be to cancel hosting and put the domains to auction. Any other action would likely cost more in paid skills, hosting, etc than they make.
It's all very interesting and challenging. I really don't envy whoever has to sort this out.
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