Despite the rapid growth of cryptocurrency, little is known about the issues that cryptocurrency poses in the restructuring and insolvency context. This article examines four issues that are, or likely will be, at the forefront of the intersection of cryptocurrency and insolvency: (1) how courts will adjudicate ownership issues, particularly in instances in which a cryptocurrency is tied to a physical asset; (2) whether cryptocurrency will be classified under the Bankruptcy Code as a commodity, a currency or something else; (3) how cryptocurrency's volatility can have a significant impact on various aspects of an insolvency proceeding; and (4) how cryptocurrency may be treated under the Uniform Commercial Code.
Read "What Happens When Crypto Meets Insolvency" in its entirety here.
New York
