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Protecting one’s cryptocurrencies and digital assets

On Behalf of | Jun 9, 2022 | Asset protection |

Traditional asset protection has involved using various instruments to safeguard individual or company assets from unsecured creditors. These assets have typically included things such as bank accounts, brokerage accounts, valuable art and collectibles, and other items of considerable worth. In recent years, however, many people have invested in cryptocurrency and other forms of digital assets. Now, more asset protection professionals in Georgia and elsewhere are providing services to help clients protect these non-traditional assets. 

Foreign asset protection trust 

One of the most effective instruments to use for asset protection is an asset protect trust. However, an instrument exists for offshore jurisdictions and assets not under the purview of the U.S. government. Foreign asset trust offer protection in the following ways: 

  • The do not recognize civil court judgments awarded in the United States 
  • They provide procedural and legal hurdles against U.S. creditors if the party initiates litigation against the trust in the non-domestic jurisdiction. 

Creditors seeking a claim to a foreign asset trust’s funds face a higher burden of proof, and they must comply with various statutes of limitation and other legal entanglements. Some countries place even more stringent requirements on the entity seeking access to the trust’s assets, and some foreign jurisdictions do a better job than others of truly protecting a trustee’s assets. 

Where to best find help and support 

Recently, asset protection trust practitioners have looked to foreign asset trusts as a way to protect their clients’ digital assets, cryptocurrency, NFTs and other similar property. For the most part, the cryptocurrency system is a non-regulated, non-centralized and global system, so using a foreign asset trust makes sense. Those in Georgia who wish to protect their cryptocurrencies and digital assets could benefit from consulting with an experienced asset protection attorney for more information.