A court located in the Province of Tucumán ordered a preventive seizure of the current and
future funds held by the debtor of an IOU in a well-known cryptocurrency exchange platform
operating outside of Argentina, for a total amount of USD 6,500. Given the high volatility of
these goods, and the impossibility of depositing them in Argentinean bank accounts, it remains
to be seen how this warrant will be implemented.

Massification of the possession of tokenized assets is beginning to show two obvious trends:

• Creditors will begin to resort to these holdings to guarantee the collection of their
  claims,
• This type of assets is not completely outside of the jurisdiction of the States, which are
  speeding up their regulation.

Both trends are tested by the first cases of risk of bankruptcy of exchanges. Such is the
situation regarding one of the biggest platforms, which has reported heavy financial distress in
last May reports. Although this is an isolated case, it is prudent for users of exchange services
to consider the possible consequences of bankruptcy of those businesses.

For example, under Argentine law the deposit of goods such as cryptocurrencies may be
considered as a transfer of ownership to the platform. According to this interpretation, users’
funds could be considered as part of the exchange’s assets in an eventual bankruptcy
proceeding, leaving the user a simple credit that must be asserted in court with many others of
equal or higher payment priority.

For guidance and advice related to disruptive technologies and businesses, cryptocurrencies,
NFTs and blockchain please do not hesitate to contact us at info@lermanszlak.com.

Luciano N. Gutman y Gabriela Ruth Szlak (C.P.A.C.F. Tº 79 Fº 516)