A Global Guide For In-House Counsel: Doing Business In A Rapidly Changing World

How is cryptocurrency treated as an asset in a bankruptcy proceeding in your jurisdiction?

While the Cayman Court has not yet had the opportunity to rule on the matter, it is highly likely that cryptocurrencies will be treated as property of the company which the liquidators are empowered to collect and which is to be applied in satisfaction of the company's liabilities.

In this regard, it is instructive to look at the position under English law. In November 2019, The UK Jurisdiction Taskforce issued an opinion in which it determined that, although the classification would ultimately depend on the nature of the crypto-asset, in principle crypto-assets should be treated as property and that they had no doubt that they could be property for the purposes of the English Insolvency Act 1986. In the subsequent decision in Science Ion v. Persons Unknown, the English Court held that cryptocurrencies are capable of being property for the purpose of obtaining a Norwich