There has been no shortage of high-profile insolvencies in the crypto market in recent months across a range of market participants and geographies. These include the US Chapter 11 and Bahamas provisional liquidation of FTX as well as the US Chapter 11 filings of BlockFi, Singapore-based crypto hedge fund ThreeArrows Capital, US-based lender Celsius Network, US-based lender Voyager Digital, US-based crypto mining data centre Compute North and Germany-based crypto bank Nuri.

While the number of insolvencies poses questions about the risk management and governance of crypto businesses, this briefing by our Restructuring, Turnaround and Insolvency team addresses what it means legally and practically for users, lenders and other market participants when a crypto custodian falls into distress and even an insolvency process.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.