In the Press
June 30, 2023

Bankrupt in the Metaverse (Practical Law)

Bankruptcies are likely to become part of the metaverse just as they are in every other part of economic life. Participants may be able to protect themselves from unexpected shocks by drafting contract language that clarifies ownership rules at the outset for fungible digital tokens, non-fungible token (NFTs), and content and appropriately pricing their risk. However, participants must understand the risks involved and watch the space closely to ensure they understand how the rules evolve as new legislation is enacted and courts adjudicate disputes. Financial Restructuring partner Kizzy Jarashow and associate James Lathrop explain more in Practical Law.