Crypto Winter Triggers Calls for Clear Bankruptcy Guidelines

The bursting of the cryptocurrency market is fueling calls for clearer guidelines on how to treat assets in crypto company bankruptcies.

Like the technology itself, uncertainties abound at the intersection of cryptocurrency and bankruptcy, stumping executives, attorneys, and traders.

Answers are still unclear on to what extent customers’ crypto holdings can be used to pay back other creditors and if a bankrupt exchange can still allow trades. There are also lingering discussions on whether crypto assets should be considered commodities—as opposed to securities—in a bankruptcy case, a distinction that can confer some benefits to both crypto companies in Chapter 11 ...