Crypto Exchanges Including OKX, Bybit & Bitstamp ‘Working with Russian Arbitrators’ on Bankruptcy Cases
A Russian bank says international crypto exchanges like OKX, Bybit, and Bitstamp “cooperate with Russian arbitration managers” in bankruptcy investigations....
- Russian banks, including Sberbank and VTB Bank, are facing challenges in collecting alternative assets such as cryptocurrencies in bankruptcy cases.
- Sberbank's enforcement and bankruptcy department chief, Evgeny Akimov, stated that international crypto exchanges like OKX, Bybit, and Bitstamp are cooperating with Russian arbitration managers in bankruptcy investigations.
- These exchanges are informing Russian investigators about clients' crypto wallets and even sharing wallet address data.
- The lack of crypto regulation in Russia makes it difficult for banks to confiscate cryptocurrencies, as their legal status is not regulated.
- Russian bailiffs and prosecutors were given new crypto confiscation powers, but many of these powers are yet to come into effect.
- VTB Bank called for the creation of new protocols for collecting cryptocurrency to address these challenges.
- Legal experts suggest that seizing cryptocurrencies stored in offline cold wallets is relatively simple, but it becomes difficult when tokens are stored in hot wallets involving third parties like exchanges and wallet providers.
The article highlights the challenges faced by Russian banks in collecting cryptocurrencies in bankruptcy cases due to the lack of regulation. It also mentions the cooperation of international crypto exchanges with Russian arbitration managers, which could be seen as a positive development for the banks. However, the overall sentiment is neutral as the article discusses both the difficulties and potential solutions.