The order, which U.S. Bankruptcy Judge Martin Glenn issued verbally Wednesday, only applies to crypto assets held in non-interest bearing “custody” accounts. (Bloomberg)

Talking point: The ruling provides insight into how courts are likely to treat crypto assets held in various types of accounts at the many crypto lenders and platforms that are going through bankruptcy proceedings. As my colleague David Reevely and I reported, Canadian companies that have hundreds of millions of dollars worth of crypto held in custody accounts with New York-based crypto firm Gemini, which has paused withdrawals amid fallout from the collapse of FTX, have told The Logic they’re confident their funds would similarly be returned in the event of a bankruptcy. Meanwhile, despite the sector’s downturn, venture capital firms invested US$19.9 billion in crypto startups in the first nine months of 2022, putting them on track to outpace the US$21.2 billion invested in all of 2021, according to a new PitchBook report.