Moscow Arbitration Court orders bankrupt individual to disclose crypto wallet details

Ilya Tsarkov, resident of Moscow, has been recognized as an individual bankrupt by his own request due to his serious debts to the local bank. Since then, the appointed trustee in insolvency has found out about Tsarkov’s cryptocurrency wallet and asked the court to include any sums that could be found there to be a part of insolvency proceedings. The court decided in the trustee’s favor.

Cryptocurrency sums used for insolvency - this mechanism is neither permitted nor proscribed in the current Russian legal system, but the court has the powers to make it legal in this particular case, insisted the appointed insolvency trustee. Apparently, his arguments were convincing enough for Judge Larisa Kravchuk.

Tsarkov himself, however, did not want to disclose any information about his cryptocurrency wallet and funds on it, but now he has no choice, as the court explicitly ruled to “obligate Tsarkov to disclose condition of online wallet with identifier (which he owns)”.

In older reports, cryptocurrency as a means of insolvency proceedings has been outlined as a real possibility in the future versions of the local bankruptcy code by Anatoly Aksakov, head of the Russian Parliamentary Financial Market Committee. This means that this ruling of the Moscow court is ahead of its time.