Clifford Chance

Distressed Cryptoassets - Enforcement Of Security Interests, Restructuring, And Bankruptcy

July 14, 2022

The market for cryptoassets has grown enormously since Bitcoin was launched in 2009, nearly reaching $3 trillion total market capitalization by November 2021 according to CoinMarketCap. In recent months, however, the crypto market has declined by an estimated $2 trillion. Liquidity and solvency concerns have emerged for certain crypto businesses. It is therefore timely for stakeholders and other market participants to assess the legal and practical concerns associated with the treatment of cryptoassets in a distressed scenario.

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