On November 14, Joseph Cioffi, Davis+Gilbert Insolvency + Finance chair, will speak on a panel at Association of Insolvency & Restructuring Advisors (AIRA) 21st Annual Advanced Restructuring & Plan of Reorganization Conference, during a session entitled, “Digital Assets and Investors in Distress.”
This panel intends to provide a general overview of cryptocurrency and digital assets, including how and by which agencies they are presently regulated. The panel will then discuss the question of ownership of cryptocurrencies and digital assets and its implications in various settings, including a chapter 11 bankruptcy filed by a cryptocurrency exchange, lending platform, or crypto-focused investment fund, and a bank insolvency proceeding. The panel will also discuss issues related to cryptocurrency and digital asset-related frauds, including a general overview of a Ponzi scheme, potential red flags for investors, and the contours of a good-faith defense. The goal of this panel is to engage with important questions facing investors and distressed entities in distressed situations involving cryptocurrencies and digital assets.