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Clifford Chance

Clifford Chance


Decoding Distress: Cryptoassets, Restructuring, and Insolvency under English law

6 June 2022

The cryptoasset market has grown enormously since Bitcoin was launched in 2009, reaching an estimated aggregate value of US$3 trillion by November 2021, according to the ECB. But in recent months investors have weathered losses estimated by the ECB at US$1.3 trillion, with the failure of the TerraUSD stablecoin, and the Tether stablecoin that underpins much other trading in cryptocurrencies falling (at least for a time) below its US$1 peg. Market participants, regulators and other stakeholders therefore need to pay close attention to how cryptoassets may be treated in a distressed scenario.

In this article, Clifford Chance experts consider the current status of English law as it relates to cryptoassets, restructurings and insolvency.

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