Tag Archives: cryptocurrency

Cryptocurrency Brings Disruption to Bankruptcy Courts—What Parties Can Expect and the Open Issues Still To Be Resolved (Part Two)

In this second part of our blog exploring the various issues courts need to address in applying the Bankruptcy Code to cryptocurrency, we expand upon our roadmap.  In part one, we addressed whether cryptocurrency constitutes property of the estate, the impacts of cryptocurrency’s fluctuating valuation, issues of perfection, and the effects of cryptocurrency on debtor-in-possession … Continue Reading

Cryptocurrency Brings Disruption to Bankruptcy Courts—What Parties Can Expect and the Open Issues Still To Be Resolved (Part One)

Many authorities and commentators have considered cryptocurrencies, and the blockchains that undergird them, as a potentially disruptive force in the financial industry.  Now, that disruption has made its way to a different side of finance—bankruptcy, and during the past year, the United States bankruptcy courts have had to confront many unexpected challenges involved in dealing … Continue Reading

Delaware Bankruptcy Court Approves DIP Financing of 700 Bitcoin

On May 8, 2023, online cryptocurrency exchange platform Bittrex, Inc. and three of its affiliated entities (collectively “Bittrex”) filed for chapter 11 to wind down their U.S. and long-dormant Malta operations.  The bankruptcy filing followed costly regulatory investigations and an April 17, 2023 SEC enforcement action alleging that Bittrex improperly sold crypto assets that were … Continue Reading

Who Owns the Crypto, the Customer or the Debtor?

Whose crytpo is it?  With the multiple cryptocurrency companies that have recently filed for bankruptcy (FTX, Voyager Digital, BlockFi), and more likely on the way, that simple sounding question is taking on huge significance.  Last week, the Bankruptcy Court for the Southern District of New York (Chief Judge Martin Glenn) attempted to answer that question … Continue Reading

Unlocking value in an insolvent estate: an update on cryptocurrencies

We previously considered the potential implications for insolvency professionals of the rise of cryptocurrencies (available here). One of the principal issues identified was the uncertainty surrounding the legal status of cryptocurrencies; what class of asset were they and, subsequently, how would they be treated under English law? This question had been subject to little legal … Continue Reading

Cryptocurrencies: practical considerations in insolvencies

In a recent report by INSOL International, only 5% of insolvency practitioners (“IPs”) said that they had a “comprehensive or practical/working or understanding” of crypto-currency. So with over 4,000 types of cryptocurrency now available and as payment technology continues to develop, we look at some issues facing IPs, including How to identify cryptocurrency How to … Continue Reading

What Value is Cryptocurrency to a Bankruptcy Estate?

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 … Continue Reading

Blockchain: Buying a Property in 60 seconds…

In a recently published article, John Danahy, a real estate partner in Squire Patton Boggs’ London office, explores transactions of the future using cryptocurrencies, blockchains and “data vaults”containing both personal and property information.  Restructuring and insolvency professionals will need to keep up to date on these developments which will have an impact not only on … Continue Reading

Blockchain: Banks Are Taking Back Control – Time for the Real Estate Industry to Do the Same?

In a recently published article, John Danahy, a real estate partner based in Squire Patton Boggs’ London office, explores the development of a new cryptocurrency and its impact on the worlds of finance and global real estate. Of particular relevance to restructuring and insolvency professionals is the use of so-called “blockchains” in title transfers and … Continue Reading
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