In their article published by the IBA Insolvency and Restructuring International Magazine titled “Russia: Cryptocurrency and Bankruptcy Estate”, Sergey Treshchev and Elena Malevich of Squire Patton Boggs, Moscow analyse recent decisions in the Russian courts considering whether cryptocurrencies are an asset which form part of the bankruptcy estate.
Given the speed at which cryptocurrency has grown as a concept, it is of no surprise that bankruptcy and insolvency legislation has yet to catch up and define just what cryptocurrency is and therefore how it should be treated in a debtor’s bankruptcy or corporate insolvency. Not just in Russia but internationally.
As courts worldwide grapple with the concept of whether cryptocurrency should be treated as an asset or currency, there is no uniform view. In the U.S., for example, some bankruptcy courts concluded that they should be treated as currency: HashFast Technologies, LLC v. Lowe (In re HashFast Technologoes, LLC), Bankr. Case No. 14–30725DM, Adv. Pro. No. 15-3011DM (Bankr. N.D. Cal. Feb 19, 2016). In the EU, Member States are split on the position.
Sergey and Elena discuss their thoughts on the findings of the Russian courts. If you would like to read the full article, please click here.