The recent drop in value of crypto-assets is likely to increase litigation risks for those who participate in the crypto-asset ecosystem.

In our experience, sharp market movements tend to crystallise disputes that were previously “latent”: margin shortfalls, valuation challenges, alleged misstatements and insolvency-related claims. Disputes can be between investors (retail and institutional), exchanges and custodians, lenders, brokers and market-makers, token issuers, “crypto-treasury companies”, directors and officers, and advisers (including introducers and influencers). Below we summarise the main risks on the horizon.

Early 2026 has seen a striking drop in the value of crypto-assets. By 8 February 2025, the cryptocurrency…