As more businesses hold cryptocurrency as a business asset, ABCs are encountering digital currency for the first time. The issues are novel, the legal framework is unsettled, and the practical challenges are significant.
Cryptocurrency in ABC Estates
Cryptocurrency held by a business is an asset of the estate — the assignee must obtain control of the private keys or exchange accounts. Valuation is challenging because of price volatility. Liquidation must be timed carefully — selling into a volatile market at the wrong moment can significantly affect creditor recoveries.
Assignees must secure cryptocurrency immediately or it may be lost. Unlike bank accounts, which can be frozen with a letter, cryptocurrency held on private keys is accessible to anyone who has the keys. If the business owner retains access after the assignment, the assignee has a major control problem. Business owners who hold significant cryptocurrency as a business asset should plan this transition carefully before the Assignment Deed is signed.
The California ABC System gives business owners and creditors the exact tools, templates, and step-by-step guidance to navigate an Assignment for Benefit of Creditors — faster and cheaper than bankruptcy. Request your free evaluation here.
California ABC System — Assignment for Benefit of Creditors 
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