In Re Bittrex Global (Bermuda) Ltd (in liquidation) [2026] CA (Bda) 1 Civ, the Bermuda Court of Appeal delivered its first substantive decision interpreting the Digital Assets Business Act 2018 (DABA). The Court held that customer digital assets held on an exchange do not form part of the exchange's estate in liquidation. Applying a functional analysis to sections 17 and 18 of DABA, the Court established that statutory segregation rules operate in substance as a trust account, ensuring customers retain proprietary ownership that shields their assets from general corporate creditors.
- Practice Impact: Confirms that statutory asset segregation frameworks under Bermuda law provide robust proprietary protection for client assets in exchange insolvencies.
- Source: Read Hugh James' Analysis of Bermuda Court of Appeal in Re Bittrex Global.
Bermuda (Court of Appeal): Customer Crypto Assets Held Outside Exchange Liquidation (Re Bittrex Global)