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OBLIGATIONS OF A CRYPTO
BUSINESS
By: www.ProfitableInvestingTips.com
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
When someone starts a business they come under
various obligations.This is something that many
folks forgot in the crypto world in the rush to get
rich before crypto winter. Some folks are still
paying the price for sloppy business dealings or
fraud. What are the obligations of a crypto
business?
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
How are some crypto businesses now paying a
price for forgetting this part of doing business?
These thoughts came to mind as we were
reading about a lawsuit regarding Gemini and
DCG defrauding customers of $1.1 billion.
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
Gemini and DCG Fraud Allegation Update
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
A lawsuit filed by the State of NewYork alleges
that GeminiTrust Co. and DCG (Digital Currency
Group) defrauded customers of more than a
billion dollars.The gist of the matter is that the
defendants in this case did not adequately
advise investors of crypto-lending program risks
back in 2021.
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
This was at the time that crypto investments were
plummeting and crypto businesses were
scrambling to keep from losing everything.
Specifically, nearly two-thirds of the third-party
loans by Gemini and DCG were to one business
entity which was also in trouble, the Alameda
Research arm of FTX.
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
What crypto businesses were trying to prevent was
an old fashioned run on the bank in which
customers and investors all want their money
back and all at the same time.When there is not
enough ready cash on hand to pay off those who
want out, the business collapses. Lying about
one’s financial situation at such times is
fraudulent, illegal.
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
It is noteworthy that Gemini, FTX, and the Genesis
arm of DCG are currently suing each other and
claiming that the others were the ones who did
wrong.
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
The Obligation of Due Diligence
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
When you invest money with a business and they say
that they are going to handle your assets in a
businesslike manner, you expect them to do just
that. One of the issues in the Gemini and DCG
matter is that some of the invested money was with
Three Arrows Capital, a crypto entity whose
collapse started the cascade of business failures in
crypto. Despite assurances that they were auditing
the companies to whom they had been loaning
crypto assets, there was no such audit for two years
during which timeThree Arrows went under.
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
Obligation ofTelling theTruth to Investors
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
When you invest your money with someone you
expect them to be truthful in regard to the
safety of what you invested. In this case, Gemini
gave no warnings to its investors even while its
Chief Operating Officer took his $100,000
investment with him as he left the company to
work for Binance.
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
Meanwhile, Genesis created a promissory note for
$1 billion which conveniently covered up their
losses. Genesis failed to tell anyone that this was
essentially pretend money, much like FTX
moved money to its Alameda Research arm and
showed it as assets in both parts of the
company.
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
The Obligation of an Investor
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
There were lots of shenanigans going on in crypto
as it collapsed under the weight of crypto winter.
There was a lot of sheer stupidity that led up to
crypto’s problems, the worst of which was the
fanciful belief that crypto would just keep going
up forever. Nevertheless, going back to the time
of the Roman empire we have the saying, caveat
emptor, let the buyer beware.
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
The buyer is ultimately responsible for checking
out the suitability and viability of an investment.
If something seems just too good to be true it
probably is and the investor ought to forego the
investment.
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
What we are seeing now is the government
stepping in with regulations in an attempt to
make the crypto arena safer for investors.These
efforts may well make the whole system more
rigid as well. Henceforth, crypto business
obligations will have the force of law as opposed
to the force of morality behind them.
https://profitableinvestingtips.com/profitab
le-investing-tips/obligations-of-a-crypto-
For more insights and useful information about
investments and investing, visit
www.ProfitableInvestingTips.com.

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Obligations of a Crypto Business