when

Coin

<ul class="news-points wp-block-list"> 
 <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="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/">Understanding the Legal Challenges of Crypto Bankruptcies</a> appeared first on <a href="https://coinedition.com">Coin Edition</a>.</p>

Understanding the Legal Challenges of Crypto Bankruptcies

Coin Edition

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