Crypto assets in an insolvency are found by combining the debtor's own records (accounts, bank transfers to exchanges, emails, devices) with on-chain tracing that follows funds to exchanges and other identifiable services. Once funds are located at a custodian, the liquidator, trustee or administrator can request information and the transfer of balances, with a court order where needed; self-custody wallets require access to the keys or the cooperation of the debtor. Tracing also reveals transfers made before the insolvency that may be challenged and clawed back.
Where to look first
- Accounting records and balance sheets mentioning digital assets, tokens or 'other receivables'.
- Bank transfers to and from crypto exchanges or payment processors.
- Emails and documents from exchanges (account confirmations, withdrawal notices).
- Company devices, hardware wallets, password managers and backup files.
- Smart contracts or tokens issued by the company, if it ran a crypto project.
From addresses to recoverable assets
Starting from known addresses, on-chain analysis maps where funds went and attributes destinations to exchanges, stablecoin issuers, DeFi protocols or unidentified wallets. Funds at a regulated exchange are usually the most recoverable: the exchange can be asked to identify the account and freeze or transfer balances, with an order where required. Stablecoins such as USDT and USDC can in some cases be frozen by the issuer. Funds in self-custody can be secured only with the keys, which is why the debtor's duty to cooperate matters.
The officeholder's legal tools
Names and procedures vary, but most insolvency laws give the liquidator, trustee or administrator similar tools:
Some laws also address crypto directly. Switzerland, for example, allows crypto assets held by a bankrupt custodian for clients to be segregated from the estate, which matters when the debtor is itself an exchange or wallet provider.
- taking control of the debtor's assets, records and devices;
- requiring the debtor and its directors to disclose all assets and cooperate;
- obtaining information from third parties such as banks and exchanges, if necessary through the court;
- seeking freezing orders over identified assets;
- challenging transfers made before the insolvency to related parties or to the detriment of creditors.
Cross-border reach and speed
Crypto rarely stays in one country. An exchange holding the funds may be abroad, so the officeholder may need the foreign court to recognise the insolvency, for example under laws based on the UNCITRAL Model Law on Cross-Border Insolvency or, within the EU, the Insolvency Regulation. Speed matters too: whoever controls the keys can move crypto in minutes, and exchanges and stablecoin issuers act faster when given precise addresses, amounts and transaction references. A preliminary tracing at the opening of the procedure, followed by a fuller report for court actions, is often the most effective sequence.
How Advisorn helps
Advisorn Forensics supports liquidators, trustees, bankruptcy offices and creditors' lawyers in different jurisdictions with signed tracing reports. The reports identify where crypto assets are held and which pre-insolvency transfers deserve scrutiny.
UNCITRAL Model Law on Cross-Border Insolvency (1997); Regulation (EU) 2015/848 on insolvency proceedings. Example: Art. 242a SchKG/DEBA (Switzerland, segregation of crypto assets held for third parties)
Updated November 2026 · General information, not legal or tax advice on your specific case.