The cryptocurrency market has experienced significant liquidity events, accelerating an industrywide sell-off and leaving the value of cryptocurrencies at historic lows—what many call a “crypto winter.” The idea that participants in the cryptocurrency industry, namely exchanges that operate platforms that allow users to transact in cryptocurrency, may resort to chapter 11 bankruptcy has created questions as to how such assets would be handled during a bankruptcy.
Proskauer partners Steven O. Weiss, Wai Choy, and Vincent Indelicato explore these issues in a recently-penned article, “The Treatment of Cryptocurrency Assets in Bankruptcy,” for the Journal of Corporate Renewal (JCR), the official publication of the Turnaround Management Association (TMA).
