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ARTICLE · 01 AUGUST 2022

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Crypto Winter Is Here – What Does It Mean For Insolvency Practitioners?

Herbert Smith Freehills Kramer LLP
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The global market in crypto assets is currently experiencing a crypto winter, losing approximately US$2 trillion in value since the peak rally in 2021...

AustraliaTechnology
Paul Apáthy
Paul Apáthy
Susannah Wilkinson
Susannah Wilkinson

The global market in crypto assets is currently experiencing a "crypto winter", losing approximately US$2 trillion in value since the peak rally in 2021.1 The price of Bitcoin has retreated approximately 70% from its November 2021 high of nearly US$69,000. In this stormy environment crypto insolvencies are on the rise.

However the rapidly evolving nature of the crypto industry and the complex nature of crypto assets and transactions present unique challenges for insolvency practitioners (IPs) seeking to resolve or restructure crypto firms.

In this note we explore the current crypto winter, and some of the specific issues that arise in respect of insolvencies of crypto firms. In particular, we address:

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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