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Bitcoin.comOctober 28, 20262 min read

Why Crypto Depositors Could Lose Everything in Bankruptcy

Cryptocurrency platforms often use complex offshore structures that leave retail depositors exposed to losses when platforms collapse.

Cryptocurrency platforms often use complex offshore structures that leave retail depositors exposed to losses when platforms collapse. According to Roshan Dharia, customers frequently surrender legal ownership of their digital assets without realizing it, leaving them ranked as unsecured creditors during bankruptcy proceedings. How Offshore Structures Expose Crypto Depositors When a centralized cryptocurrency platform halts withdrawals, […]

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Why Crypto Depositors Could Lose Everything in Bankruptcy