Bitcoin
Why Crypto Depositors Could Lose Everything in Bankruptcy
Bitcoin.com News·October 28, 2026·1 min read
Crypto depositors may lose everything in bankruptcy due to complex offshore structures, according to Roshan Dharia. Customers often surrender legal ownership of digital assets unknowingly, becoming unsecured creditors when platforms collapse. This leaves them exposed to significant losses when centralized platforms halt withdrawals and enter bankruptcy proceedings.
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