Crypto firm bankruptcies and resulting disruption in the crypto ecosystem will continue to exacerbate liquidity and regulatory concerns in this space. Signs of contagion are evident as prices of almost every cryptocurrency type have halved in recent months. Since all participants supporting the crypto ecosystem are at risk, managing that risk is critical.

Fund managers should be prepared on multiple fronts, as the following examples illustrate:

Everything, everywhere, all at once is our risk thesis for 2023, but one must not forget about concentration risk. This issue has rocketed up diligence agendas for LPs and GPs alike as the collapse of Silicon Valley Bank proved it really was the bank for venture capital.The entry of SVB into receivership on March 10, 2023 highlighted just how central it had become to U.S.

The Eleventh Circuit Court of Appeals recently reversed summary judgment entered in favor of Experian Information Solutions, Inc. (“Experian”) in a Fair Credit Reporting Act claim brought by Henry Losch (“Losch”) finding not only that Losch had standing to bring the claims but also that Experian’s investigation of Losch’s credit reporting dispute was not “reasonable as a matter of law.” Losch v. Nationstar Mortgage LLC d.b.a. Mr. Cooper, -- F. 3d. --, 2021 WL 1653016, *1 (11th Cir. April 28, 2021).