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The Crypto Quandary: Is Bankruptcy Ready?

Item

Title

The Crypto Quandary: Is Bankruptcy Ready?

Creator

Date

2020-7-4

Volume

115

Bibliographic Citation

Megan McDermott, The Crypto Quandary: Is Bankruptcy Ready?, 115 Nw. U.L. Rev. Online 24 (2020).

Abstract

As the United States grapples with how best to manage a global pandemic, bankruptcy courts are bracing for the inevitable fallout from COVID-19. As we saw in the wake of the 2008 financial crisis, hardhit businesses will need to reorganize to adjust to new conditions, while out-of-work consumers will need debt relief options. But there will be a new
twist for this impending wave of bankruptcies: how should bankruptcy courts deal with crypto assets like Bitcoin? This Essay argues that the rise of cryptocurrency investments over the last decade poses serious complications for the next round of consumer and business bankruptcies. Although
legislative solutions may be necessary to adequately address these complications, at the very least, greater awareness of these issues will help ensure that courts and stakeholders are better prepared to address this looming crisis.