when

Coin

<ul class="news-points">
 <li><strong>Crypto bankruptcies like Celsius, FTX, and BlockFi create legal chaos for investors.</strong></li>
 <li><strong>Conflicting crypto asset valuation methods in bankruptcy court cause uncertainty.</strong></li>
 <li><strong>Bankruptcy Code lacks clear guidance on digital asset treatment, leading to diverse outcomes.</strong></li>
</ul>
<p>The spate of crypto bankruptcies of major platforms like Celsius, FTX, and BlockFi have brought doubts in the crypto community on the legal uncertainties and financial turmoil coexisting within this highly volatile space.</p>
<p>The sudden changes in legal rights and responsibilities during these crypto bankruptcies have created unpredictable results that some experts are comparing it to stepping into a bizarre alternate reality.</p>
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio">
 <div class="wp-block-embed__wrapper"><iframe title="Celsius Network &amp; Ionic Digital Updates: July 31st 2024" width="640" height="360" src="https://www.youtube.com/embed/oVnoo4Zd9dM?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
 </div>
</figure>
<p>One of the most pressing concerns is that the <a href="https://www.govinfo.gov/content/pkg/USCODE-2011-title11/html/USCODE-2011-title11.htm" target="_blank" rel="noopener noreferrer nofollow">Bankruptcy Code</a> lacks specific guidance on how and when to value digital assets. This has left stakeholders grappling with a multitude of possibilities, where the value of their crypto holdings could fluctuate dramatically depending on the courtroom they find themselves in.</p>
<p>Ideally, in bankruptcies, creditors receive a percentage recovery after their claims are processed. However, crypto customers of bankrupt platforms have bee…</p>
<p>The post <a href="https://coinedition.com/understanding-the-legal-challenges-of-crypto-bankruptcies/" rel="noopener noreferrer nofollow">Understanding the Legal Challenges of Crypto Bankruptcies</a> appeared first on <a href="https://coinedition.com" rel="noopener noreferrer nofollow">Coin Edition</a>.</p>

Understanding the Legal Challenges of Crypto Bankruptcies

Coin Edition

Other articles published on Aug 1, 2024

Miners in a Difficult Situation After Bitcoin Halving! Bitcoin Mining Company Riot Platforms Anno...

Analyst Compares Bitcoin and Gold

Bitcoin Tumbles as Mt. Gox Executes Massive BTC Transfer: How Much

South Korea Introduces Supervisory Fee for Crypto Operators: Major Exchanges to Pay Up

Cryptocurrencies Face Sharp Declines

Ferrari to Extend Cryptocurrency Payments to Europe by July End

Join our free newsletter for daily crypto updates!