Client Alert: Surviving the Crypto Winter: Tips for Limiting Counterparty Risk

As crypto markets decline, businesses in the crypto industry face real risks of failure. Everyone in the industry is, or should be, thinking about counterparty risk. There has been a lot of focus on how crypto users can protect themselves (i.e., “not your keys, not your crypto”), but less guidance to help crypto businesses protect themselves. If you work with any businesses in the crypto space, here’s some practical advice:

Act Now to Protect Yourself from Clawbacks. If your business is being paid for goods or services, you should consider taking actions to protect yourself while you are still getting paid. If the company paying you later files for bankruptcy, payments you received within 90 days before the bankruptcy, or even longer in some cases, might be clawed back unless you take action to protect yourself. A “preference” lawsuit by the bankruptcy estate typically seeks the return of payments made by a bankrupt company within the 90 days before the bankruptcy filing. 

Read the full alert here.

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© 2026 Jenner & Block LLP. Attorney Advertising. Jenner & Block LLP is an Illinois Limited Liability Partnership including professional corporations. This publication, presentation, or event is not intended to provide legal advice but to provide information on legal matters and/or firm news of interest to our clients and colleagues. Readers or attendees should seek specific legal advice before taking any action with respect to matters mentioned in this publication or at this event. The attorney responsible for this communication is Brent E. Kidwell, Jenner & Block LLP, 353 N. Clark Street, Chicago, IL 60654-3456. Prior results do not guarantee a similar outcome. Jenner & Block London LLP, an affiliate of Jenner & Block LLP, is a limited liability partnership established under the laws of the State of Delaware, USA and is authorised and regulated by the Solicitors Regulation Authority with SRA number 615729. Information regarding the data we collect and the rights you have over your data can be found in our Privacy Notice. For further inquiries, please contact dataprotection@jenner.com.

Client Alert: Surviving the Crypto Winter: Tips for Limiting Counterparty Risk

As crypto markets decline, businesses in the crypto industry face real risks of failure. Everyone in the industry is, or should be, thinking about counterparty risk. There has been a lot of focus on how crypto users can protect themselves (i.e., “not your keys, not your crypto”), but less guidance to help crypto businesses protect themselves. If you work with any businesses in the crypto space, here’s some practical advice:

Act Now to Protect Yourself from Clawbacks. If your business is being paid for goods or services, you should consider taking actions to protect yourself while you are still getting paid. If the company paying you later files for bankruptcy, payments you received within 90 days before the bankruptcy, or even longer in some cases, might be clawed back unless you take action to protect yourself. A “preference” lawsuit by the bankruptcy estate typically seeks the return of payments made by a bankrupt company within the 90 days before the bankruptcy filing. 

Read the full alert here.

Related Capabilities

Related Locations

© 2026 Jenner & Block LLP. Attorney Advertising. Jenner & Block LLP is an Illinois Limited Liability Partnership including professional corporations. This publication, presentation, or event is not intended to provide legal advice but to provide information on legal matters and/or firm news of interest to our clients and colleagues. Readers or attendees should seek specific legal advice before taking any action with respect to matters mentioned in this publication or at this event. The attorney responsible for this communication is Brent E. Kidwell, Jenner & Block LLP, 353 N. Clark Street, Chicago, IL 60654-3456. Prior results do not guarantee a similar outcome. Jenner & Block London LLP, an affiliate of Jenner & Block LLP, is a limited liability partnership established under the laws of the State of Delaware, USA and is authorised and regulated by the Solicitors Regulation Authority with SRA number 615729. Information regarding the data we collect and the rights you have over your data can be found in our Privacy Notice. For further inquiries, please contact dataprotection@jenner.com.

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