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Crypto Assets Under the Bankruptcy Code: Practical Guidance for Addressing Novel Problems

Applying the Lessons From Recent Crypto Exchange Bankruptcy Cases

A live 90-minute CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Thursday, July 31, 2025

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, July 11, 2025

or call 1-800-926-7926

This CLE webinar will offer guidance on how bankruptcy and restructuring attorneys are analyzing the many complex and novel legal theories and information challenges they face when representing clients involved in digital currency exchange cases or when the debtor is the holder of digital assets that need to be valued, preserved, and monetized. The panel will focus on avoidance actions and the unique problems that occur when the opposing party is or becomes a debtor itself. In reviewing the lessons from recent exchange cases regarding the treatment and disposition of crypto assets, the panel will explore which critical issues remain largely unresolved or unaddressed and best practices for representing clients attempting to navigate this uncharted territory.

Description

Numerous cryptocurrency exchanges or platforms have filed for Chapter 11 protection in recent years, and applying the Bankruptcy Code -which was created in 1978 - to digital assets maintained on digital “exchanges” has raised numerous complicated legal issues and frustrating discovery challenges. Both judges and lawyers will need to be creative and flexible in their practical workarounds. There appears no reason to believe the industry will face significant regulation so hearing from trailblazers who have found ways to address these problems will be crucial in establishing best practices.

Peculiar issues often arise when litigating turnover or avoidance actions. In fact, Coinbase has published its own guide for bankruptcy trustees. Likewise, the U.S. Trustee has put out guidance on investigating the financial affairs of a debtor who has cryptocurrency. In a recurring scenario, the assets of one debtor are actually held by or were transferred to another debtor, leading to debtor v. debtor conflicts across jurisdictions and circuits. Lessons from a wave of cryptocurrency exchange and lender bankruptcies starting in 2022 speak to getting records and information, identifying property of the estate, application of the automatic stay, perfection of security interests, and recovery of transferred assets.

Listen as our panel discusses lessons from the bankruptcies of crypto exchanges, practical approaches to emerging problems, the key issues arising in the bankruptcies of debtors owning these assets, and what policy changes could mean for bankruptcy and reorganization professionals.

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Outline

  1. Overview of exchange bankruptcies
  2. Lessons on key issues
  3. Overcoming challenges with digital and crypto assets
    1. Obtaining data and records
    2. Volatility and valuation
    3. Classification of claims
    4. Perfection of security interests
    5. Turnover, avoidance, and other litigation
    6. Limits of bankruptcy jurisdiction: Ryniker v. Washington (In re Augustus Intelligence), Case No. 21-10744, Adv. Proc. No. 23-50370 (Bankr. D. Del.2025)

Benefits

The panel will discuss these and other important issues:

  • In what medium are crypto claims paid?
  • What can trustees recover in avoidance actions?
  • How are crypto assets valued throughout the life of the case and for unique bankruptcy purposes?
  • Who is entitled to increases in the value for crypto assets over the life of the case?

Faculty

Grasso, Hunter
Hunter J. Grasso

Attorney
Berger Singerman

Mr. Grasso is an associate on the firm’s Business Reorganization Team. He concentrates his practice on commercial...  |  Read More

Pakrouh, Tara
Tara Pakrouh

Partner
Morris James

Ms. Pakrouh is a Partner in the bankruptcy & restructuring practice. She focuses her practice on...  |  Read More

Attend on July 31

Early Discount (through 07/11/25)

Cannot Attend July 31?

Early Discount (through 07/11/25)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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