With the growing popularity of cryptocurrencies and other digital assets, national legal systems face the necessity of adapting bankruptcy legislation to the new reality. Decentralized assets, highly anonymous transactions, and the absence of unified accounting standards create unique challenges for courts, insolvency practitioners, and creditors.
In different jurisdictions, the status of cryptocurrency ranges from "digital property" to "information," which directly affects the ability to include assets in the bankruptcy estate. For example, in the USA, courts tend to recognize cryptocurrency as a property asset subject to inclusion in the debtor's bankruptcy estate.
In the EU, the approach is heterogeneous; in Germany, cryptocurrency is interpreted as "other property," while in other countries, judicial practice is needed. In Russia, since 2021, cryptocurrency is recognized as property subject to seizure (Article 128 of the Civil Code of the Russian Federation, Law No. 259-FZ), but its legal nature remains partially undefined.
Thus, the legal qualification of cryptocurrency is a key issue for its inclusion in bankruptcy proceedings. However, discovering the asset itself is a separate challenge. The insolvency practitioner is obliged to make reasonable efforts to locate the debtor's assets, including crypto assets.


Main methods:

1. Analysis of declarations and financial statements. Despite the high anonymity of cryptocurrencies, debtors are increasingly required to disclose digital assets in their declarations.

2. Study of electronic correspondence and messengers.
Within the framework of bankruptcy proceedings, it is possible to gain access to devices where traces of cryptocurrency wallet ownership, exchange logins, etc. are recorded.

3. Analysis of blockchain transactions.
Using open blockchain scanners (e.g., Etherscan, Blockchain.info) in conjunction with the analysis of IP addresses and timestamps helps track the origin and movement of funds.

4. Requests to cryptocurrency exchanges.
Exchanges, especially those licensed in regulated jurisdictions, are increasingly cooperating with bankruptcy authorities. However, difficulties may arise in obtaining data when using unregulated platforms or mixers.

5. Assistance from specialized professionals. Engaging blockchain analysts (e.g., Chainalysis, TRM Labs) is becoming an increasingly common practice in major cases.

There are more and more cases where cryptocurrency becomes a subject of dispute. In Russia, there is a bankruptcy case of a citizen who concealed BTC, where the court recognized the asset as part of the bankruptcy estate. In the USA, for example, the Mt. Gox case, where the return of funds to creditors is made in bitcoins and dollars.
Importantly, if a debtor conceals cryptocurrency, it can be classified as hiding assets (up to criminal liability), and upon discovery of such an asset, a completed bankruptcy case may be reopened.

In the modern world, legal modernization is needed. Today, cryptocurrency is not just a speculative tool but a full-fledged asset that must be accounted for in bankruptcy proceedings alongside fiat, stocks, and real estate. Lawyers, managers, and courts must develop new mechanisms for law enforcement considering the technical specifics of blockchain; otherwise, we will end up with tens of thousands of invisible assets removed from the control of justice.

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