Weathering The Latest Storm In The Crypto Winter

For investment funds lawyers who have been in the industry for a long time, the extreme stresses in global financial markets and the banking system that occurred between mid-2007 and early 2009 (now commonly referred to as the "global financial crisis") now seem like a distant memory. However, recent events in the cryptocurrency space might mean that some of the experience gained, and lessons learned, during that period may become very useful again over the coming weeks and months.

The establishment of offshore investment funds to invest into cryptocurrency has been a very active area over the last couple of years, and there are now many offshore funds operating in this space. The US bankruptcy filings in respect of FTX, made on 11 November 2022, have resulted in the assets of one of the largest crypto exchanges by volume, with possibly over one million users, being frozen.