Examining the Legal Treatment of Cryptocurrency Assets in Nigerian Insolvency Proceedings

The classification of cryptocurrency assets in Nigerian insolvency proceedings presents novel private law challenges regarding asset identification, valuation, recovery, and distribution that existing insolvency law frameworks are not adequately equipped to address. This study examines the legal treatment of cryptocurrency assets in Nigerian insolvency proceedings, analysing the provisions of the Companies and Allied Matters Act 2020 on asset recovery, the Bankruptcy Act 2004, and the Securities and Exchange Commission's Framework on Digital Assets. Using a doctrinal methodology supplemented by interviews with 20 insolvency practitioners, 10 blockchain law specialists, and 15 regulatory officials in Lagos and Abuja, the research analyses how Nigerian insolvency officeholders have encountered cryptocurrency assets in recent corporate and personal insolvency cases. The study further examines the Central Bank of Nigeria's regulatory position on virtual assets and its implications for insolvency recovery. Comparative analysis with cryptocurrency treatment in English and Singaporean insolvency law provides important reform insights. Findings reveal that Nigerian insolvency practitioners lack clear legal guidance on the identification, preservation, and realisation of cryptocurrency assets held by insolvent companies and individuals, creating uncertainty for creditors. The research makes an original analytical contribution to the emerging field of digital asset insolvency law in Nigeria. Recommendations include legislative guidance on digital asset classification in insolvency, development of professional standards for crypto-asset recovery, and regulatory coordination between the Securities and Exchange Commission and insolvency practitioners. Keywords: cryptocurrency, insolvency law, digital assets, asset recovery, Nigeria