The Moscow bankruptcy court ruled that a bankrupt debtor would not accept payment of debts by using cryptographic currencies. The lawyer's trustee wanted to pay off his debts in bankruptcy with crypto, but he could not convince.
The court refused to pay the debts in cryptographic form in case of bankruptcy
The Moscow arbitration tribunal ruled out this week that Russian citizen Ilya Tsarkov, who filed for bankruptcy last October, will not be able to use crypt money to pay debts to bankruptcy cases.
Trustee Aleksey Leonov, who was appointed for the case from the courtroom, reported that Tsarkov offered to provide his digital savings as debt payment. He claimed that the crypto money was certainly a sellable asset.
The court wanted to pay off his debts with crypto
Leonov insisted that digital assets exist in bankruptcy assets, while Russian federal laws did not recognize the crypto currency as property. For this reason, the court refused to pay Ilya Tsarkov's debt by cryptography. The court disagreed with Leonov's stance. According to the news team:
The crypto money concept, as stated in the judgment, means that digital money is not recognized as property and therefore not included in bankruptcy assets. This is not specified in the current legislation.
Crypto money is not recognized by Russian law
Interark explained that Tsarkov voluntarily found a crypto purse on Blockchain.info, but crypto money assets are not regarded as property in Russian legislation, citing its cryptography. Earlier this month, the court ordered Leonov to disclose his cryptographic accumulations following his request.
Tsarkov's representative in the court stressed that the crypto money was not part of the Russian Civil Code. Interfax quotes: "The crypto paralara is not included in any legal process of the legal regime. Crypto money is an asset that can not be included in the bankruptcy situation. "
According to Kommersant, in our recent days, the Russian Economic Development Ministry and the Federal Financial Monitoring Service have a joint opinion:
The lack of legal financial status of digital financial assets does not allow them to be used in bankruptcy proceedings.
I think there is a need of amendment of the Russian Federal Laws because if crypto is not regarded as propery then why it has a value ang recognized by the users as liquid assets. If they will not amend the law then it is a good news to everyone especially to those who are in the government because they can hide their assets in digital which is untraceable and cannot be questioned because they are not property.