Given the recent media coverage and growing concerns among investors over the risks associated with a bankruptcy filing of a cryptocurrency exchange, it feels timely to highlight some issues that arose in the Chapter 11 cases of Cred Inc. and certain of its affiliates (collectively, “Cred”). For more updates on significant bankruptcy, restructuring and insolvency topics, subscribe to Restructuring Matters.

Continue Reading Lessons from Recent Cryptocurrency Bankruptcy Case: Cred, Inc.

Institutional investors trading cryptocurrencies generally engage cryptocurrency brokerage firms to manage trade execution, clearing and settlement logistics in the digital asset marketplace, where trading infrastructure remains highly fragmented.

When evaluating a cryptocurrency broker, an investor’s business concerns – like the broker’s technological capacities, fees, security protocols and familiarity with applicable regulatory regimes – should be front and center.  But involving legal counsel is also critical, particularly when negotiating an “account agreement”, “brokerage services agreement”, “master purchase and sale” or other similarly titled agreement that governs the broker’s provision of cryptocurrency trading services and allocation of operational, economic and legal risks between the parties.

Continue Reading Cryptocurrency Trading Agreements