Yes, you do. It’s not optional. Crypto is treated like property—just like your car or savings account. If you’re filing for bankruptcy, the law says you must list everything you own, including Bitcoin, Ethereum, or any other digital assets. Hiding it? That’s a bad idea. Here’s why.
Table of Contents
Why It’s Critical to Disclose Crypto
- It’s the Law: The U.S. Bankruptcy Code requires full transparency. Crypto isn’t special—it’s property under the law.
- Trust Matters: Courts and trustees need the full picture to evaluate your case fairly.
- Serious Consequences: Hiding assets could mean losing your bankruptcy protections or even facing fraud charges.
What Happens If You Don’t Disclose?
The consequences are harsh and unforgiving:
- Case Dismissal: Your bankruptcy could be thrown out entirely.
- Asset Seizure: Trustees may take your hidden crypto—or its value.
- No Debt Relief: You lose the chance to wipe out eligible debts.
- Fraud Charges: Hiding assets is a federal crime with fines or even jail time.
- Reputation Damage: Fraud cases can haunt your personal and professional life for years.
Transparency isn’t just smart—it’s survival.
How to Properly Report Crypto
Here’s how to stay on the right side of the law:
- List Everything: Include every coin—no matter how small its value—whether it’s on an exchange, in a wallet, or earned as staking rewards.
- Use Accurate Values: Crypto prices change fast, so report fair market value on the day you file. Use exchange statements or online tools for accuracy.
- Identify Wallets/Accounts: Provide wallet addresses and platform details so trustees can verify your holdings easily.
- Disclose Transactions: Sold or transferred crypto recently? Mention it—especially large or unusual transactions.
Why Honesty Pays Off
Being upfront about your crypto isn’t just about avoiding penalties; it simplifies everything:
- Trustees won’t waste time investigating missing assets.
- Your case moves faster without unnecessary delays.
- You keep access to bankruptcy protections and debt relief.
Trying to hide crypto is like building a house on sand—it won’t hold up under scrutiny.
Filing for bankruptcy is tough enough without adding legal trouble to the mix. By disclosing your cryptocurrency holdings fully and accurately, you protect yourself from costly mistakes and ensure your case runs smoothly. Honesty isn’t just a legal requirement—it’s your best strategy for a fresh financial start.