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Who Owns Crypto in Chapter 11? A Trillion-Dollar Question

Loeb Restructuring & Bankruptcy partner Daniel Besikof is quoted in a Law360 article discussing the first wave of Chapter 11 cases for a handful of cryptocurrency platforms, including whether the customers of the bankrupt crypto lenders will be treated as investors, unsecured creditors or trust beneficiaries. 

When cryptocurrency broker Voyager Digital filed for bankruptcy in July 2022, it listed its customers as creditors with unsecured claims. In the case of Voyager Digital, Daniel noted that customer deposits are “essentially property of the estate.” 

"Account holders are really being treated as creditors as opposed to being treated as someone Voyager holds assets in trust for," he told the publication. 

To read the full article, please visit Law360’s website (subscription required).