Vol 20 (2023) - Issue 2

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Crypto Disputes: An Offshore Perspective

Synopsis
The British Virgin Islands ('BVI') and the Cayman Islands have become the jurisdictions of choice for many developers and entrepreneurs when incorporating cryptocurrency exchanges, structuring cryptoasset funds or blockchain enterprises. As such, when a user has an issue with their account (e.g. their trade is not honoured or their account is frozen) or their cryptoassets are misappropriated there is a high probability that an exchange or entity located in the BVI or Cayman will be somewhere in the mix.
This article discusses the legal remedies that may be available in the BVI and/or the Cayman Islands in the event that crypto-related proceedings have been or will be commenced in these jurisdictions.
For the purposes of this article, we have excluded from our analysis crypto-related insolvencies, of which there are many, especially of late, varying in size and complexity.