Crypto Price Volatility Tests Courts' Ruling Abilities

Courts are grappling with how to handle cryptocurrency price volatility when it comes to determining liability and restitution. In recent cases, judges have been forced to make rulings based on fluctuating asset values.

The issue arose in two bankruptcy proceedings where the value of the crypto assets changed significantly over time. In one case, the court ruled that wrongdoers cannot use price swings to reduce their liability, while in another, the judge considered the higher value required by law for criminal restitution purposes.

Robert A. Schwinger, a legal expert, noted that courts are often called upon to make rulings driven by the value of an asset. However, with crypto assets experiencing significant price fluctuations, this can create challenges for judges.