The full case narrative
An Italian investment officer responsible for a family trust learned that an offshore digital-asset exchange had suspended withdrawals. The platform described the event as a technical interruption, but public information soon indicated a potential insolvency process. Approximately €5.8 million in entrusted assets was inaccessible, creating immediate duties to clients, trustees and regulators.
The initial task was to distinguish platform assets from property that might be held for customers. Liam Bennett coordinated the intake of custody terms, account statements, transfer receipts, banking records and the precise history of failed withdrawals. Preserving this material was essential because platform interfaces and online terms could change as the situation developed.
The legal team mapped the exchange structure, contractual entities, custodial representations and the likely insolvency forum. That work did not assume that every customer stood in the same position. The analysis considered whether particular assets had been segregated, whether trust or proprietary claims might arise, and which deadlines governed any formal proof of debt.
In parallel, the investigation examined European banking and payment connections used by the exchange. This was not an attempt to bypass a lawful insolvency. It was a separate assessment of third-party rights, potential preservation measures and whether funds outside the insolvent estate could be identified before they moved.
Daniel O’Sullivan coordinated the senior legal strategy while Liam supported Irish procedural and institutional communication. The client remained in Milan as documents, instructions and updates moved through a controlled digital case channel. Within the concentrated two-week phase, the team assembled a coordinated position for insolvency filing, third-party engagement and settlement discussions.
The matter progressed to a priority recovery arrangement based on the custody evidence and identified payment relationships. The case illustrates why exchange failures require more than waiting for a general creditor update: contractual status, asset segregation, payment intermediaries and jurisdiction can materially affect the available recovery route.
“An offshore insolvency does not end the analysis. Client-asset segregation, payment routes and third-party rights must be tested immediately.”
Illustrative image · The person shown is not the client