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Wednesday, October 28, 2026Updated 14:29 UTC

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Why Crypto Depositors Could Lose Everything in Bankruptcy

Source: Bitcoin News · Oct 28, 2026 04:45 UTC

Pile of physical souvenir Bitcoin coins — File photo antanacoins / Flickr · CC BY-SA 2.0 · Source

The Quick Take

Cryptocurrency platforms often use complex offshore structures that leave retail depositors exposed to losses when platforms collapse. According to Roshan Dharia, customers frequently surrender legal ownership of their digital assets without realizing it, leaving them ranked as unsecured creditors during bankruptcy proceedings. How Offshore Structures Expose Crypto Depositors When a centralized cr

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