b'Asset Realizationsin the New WorldMaximizing the value of technology andcannabis assets in insolvency proceedingsBy Vanessa Allen, CIRP, LIT, MNP LTD, and Dean Hutchison, MLT Aikins LLPT imes are changing and changes in corporate asset mixes alsomany suggest that the most appropriate classification spell changes for insolvency practitioners. The followingis as an intangible. Each of these interpretations is a discussion of some of the key challenges in realizingposes its own set of difficulties. For example, while on some of the emerging asset classes that are less familiar insecurity can be perfected in Canada under provincial insolvency proceedings, specifically cryptocurrency and cannabis.personal property security law against an intangible It reviews some of the difficulties surrounding achieving on theseusing a financing statement in the jurisdiction where assets in insolvency proceedings and highlights some considera- the debtor is located, unless the sale of an intangible tions for insolvency practitioners in obtaining the best recoveryis consented to by a secured lender, their registered for stakeholders. security interest may continue post-disposition.2 This CRYPTO-CURRENCYcan make it difficult for a purchaser of crypto-currency Insolvencies may arise in the context of crypto-currencyto obtain clear title to it without the benefit of aexchanges, such as the Companies\' Creditors Arrangement ActCourt Order. (CCAA) (now bankruptcy) proceedings concerning Quadriga2.Significant subject matter expertise is key to CX1 where crypto-currency is the central asset. They may alsodetermining an appropriate marketing strategy for arise where crypto-currency is just one of many assets held by ancrypto-currencies and professionals would do well to insolvent individual or corporation. Regardless of its magnitudeensure access to appropriate advice, both from the in terms of the overall insolvency proceeding, where insolvencydebtor and through third-party advisors. In addition, practitioners are taking possession of crypto-currency, below arethe volatility of crypto-currency is well documented nine key considerations in establishing a strategy to realize onand can lead to significant stakeholder disagreement around appropriate protocols for monetization and these assets: realization.3 The sale of a significant amount of a given 1. I n both the U.S. and Canada, there is significantcrypto-currency can impact the market resulting in ambiguity around the treatment of crypto-currency, which will create significant uncertainty in insolvency proceedings and may give rise to ongoing litigation.Crypto-currency does not fall into an established asset1 Supreme Court of Nova Scotia, File No. 484742 (the "Quadriga CX category under either the uniform commercial code2 CCAA Proceedings")Andrew Helman & Carl Wedoff, When Blockchain Meets Article 9 (the UCC) or provincial personal property legislationand Bankruptcy (9 February 2018) online: Law360in Canada. While support exists for the classification of.3Ibid at 386.crypto-currency as either a currency or a commodity,Volume 19 Issue 2 Rebuilding Success 35'