Debevoise & Plimpton Discusses How Bankruptcy Courts Will Measure Customer Crypto Claims

In the wake of the industry’s recent significant bankruptcy filings, crypto watchers are focusing for the first time on which crypto-entities are eligible for chapter 11 relief[1] under the U.S. Bankruptcy Code (the “Bankruptcy Code”)[2] and, if so, whether, and under what circumstances, crypto-assets held by the debtor may become property of the debtor’s “estate.”[3]  As previously posted, if a customer’s crypto-assets are deemed part of the debtor’s estate, the customer may be treated as a general unsecured creditor and, thus, potentially stand to lose some or all of the value  the crypto-assets held by … Read more