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Popular cryptocurrency exchange Coinbase surprised many in its first 2022 quarterly report when it informed customers that “custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy,... customers could be treated as our general unsecured creditors.”

Reprinted with permission from the American Bankruptcy Institute’s Young and New Member Committee Newsletter, www.abi.org. Copyright © 2022 all rights reserved.

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