The private key in insolvency: the only fact that matters

Example

A Singapore exchange with a Swiss subsidiary fails in 2026. The Swiss subsidiary ran custody for European clients under an omnibus model, with cold-wallet keys held by two Swiss directors in MPC shares and a third share held by the Singapore parent's security team. The Singapore parent's judicial manager asserts that all group crypto belongs to the Singapore estate. The Swiss bankruptcy administrator asserts that the Swiss subsidiary's clients are entitled to release under Art. 242a DEBA. Who is right depends first on whether the Swiss records are readily attributable and second on whether the Swiss subsidiary "held" the assets, which in turn depends on whether the Swiss directors' two shares could sign without the Singapore share. If they could, the Swiss entity held the assets and Art. 242a applies. If the Singapore share was required, the assets may be held jointly and the two administrators must agree a release protocol or litigate the question in both courts under the cross-border insolvency rules described in Part H, Chapter VII and Part N, Chapter IV.