In Corporate Counsel Business Journal Article, Adam Hilkemann Proposes Ways to Reduce Settlement Risk in Cryptocurrency Transactions
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Corporate Counsel Business Journal has published “Fast Take: Minimizing Settlement Risk in Cryptocurrency Transactions,” written by Akin Gump investment management counsel Adam Hilkemann. The article looks at ways to reduce some of the risks associated with transactions involving cryptocurrencies.
Hilkemann writes that, with the over-the-counter (OTC) cryptocurrency exchange volume now exceeding an estimated $12 billion a day, “it is increasingly important for buyers and sellers to manage and minimize their settlement risk.” To do so, he suggests retaining reputable intermediaries via executed agreements, “both for the arranging OTC desk and a separate and trustworthy escrow agent.”
Too often, Hilkemann says, purported “escrow” services may be offered “via an affiliated provider or through the OTC desk itself via a separate agreement (but without actual escrow of funds).” They should be avoided, he warns. Additionally, any unusual or last-minute settlement instructions should also be seen as the mark “of an inexperienced operator.”
To read the full article, please click here.
