With the global innovation pace of digital assets, innovative vehicles are being engaged that serve many of the same purposes of traditional litigation finance products. For example, BitGet has coordinated a “protection fund” that mimics a hybrid BTE – ATE insurance instrument to safeguard user deposits.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
With the global innovation pace of digital assets, innovative vehicles are being engaged that serve many of the same purposes of traditional litigation finance products. For example, BitGet has coordinated a “protection fund” that mimics a hybrid BTE – ATE insurance instrument to safeguard user deposits.
Cointelegraph.com reports that BitGet chose not to utilize third party insurance carriers and leverage digital asset architectures to organize the $200M fund in-house. BitGet decided to secure the fund with a combination of Bitcoin and Stablecoin assets to mitigate the risk of cross-border cryptocurrency market volatility.
Meanwhile, Cointelegraph.com also reports news of Voyager Digital’s similar fund that turned into a court-appointed scenario under bankruptcy restructuring. BitGet and Voyager both seemingly created the funds as an alternative to traditional litigation investment agreements.
