Delaware’s bankruptcy courts have handled notable cases involving bitcoin in financing and asset distribution. In 2023, the U.S. Bankruptcy Court in Delaware approved a debtor-in-possession (DIP) loan of 700 bitcoin for Bittrex Inc., marking the first such financing solely in cryptocurrency to fund operations and customer payouts without priming existing claims. More recently, in July 2025, Judge J. Kate Stickles ruled that commingled cryptocurrency held by Prime Core Technologies Inc. belongs to the bankruptcy estate, allowing conversion to dollars for creditor distributions rather than in-kind assets.
These rulings highlight Delaware’s role in crypto bankruptcy proceedings, where bitcoin loans and holdings face practical challenges like commingling and valuation fluctuations. The Bittrex DIP loan included protections against bitcoin price swings, capping repayment at 110% of the original value to mitigate risks. Prime’s case emphasized that omnibus wallets and poor record-keeping override blockchain traceability claims.
Outside courts, Delaware issued consumer warnings in January 2025 against bitcoin ATM scams pressuring victims to deposit cash for fake high-return investments. Meanwhile, Coinbase’s November 2025 decision to reincorporate in Texas reflects a broader shift away from Delaware amid perceptions of less crypto-friendly policies. No recent non-bankruptcy news directly addresses new bitcoin loan products or regulations specific to Delaware.
These are opinions and don’t represent HearsayOnlineCo ©️©️™️ and its subsidiaries
Bitcoin Loans 
Leave a comment