Cryptocurrency Divorce Disputes: New Challenges in Law and Technology

Cryptocurrency is becoming a new challenge in divorce lawsuits. “Crypto divorce,” a new type of legal dispute, is on the rise.

Due to the nature of cryptocurrencies, which are easy to conceal, they make the division of assets in divorce proceedings more complicated.

Experts point out that issues caused by cryptocurrencies are similar to those involving overseas accounts. A university professor stated, “If one spouse manages the wallet, they effectively control all the assets. The court must subpoena exchanges and track blockchain transactions, among other things, which requires a complex process.”

The CEO of a digital forensics company said, “Crypto divorce cases are increasing rapidly. In particular, among high-net-worth individuals going through divorce, cryptocurrency has become a major point of contention.”

Courts view cryptocurrency as a simple asset, but the problem lies in the technical aspect of wallet management. A university professor pointed out, “The court does not divide the wallet, but divides the value. Due to the high volatility of cryptocurrencies, the timing of asset division is also an important variable.”

The CEO also mentioned, “Public blockchains record all transactions, but the concealment of assets is also on the rise.”