Can Cryptocurrency Owners Become Insolvent?

[UchihaSarada]

If you are not running any business, bank, exchange, you are not responsible to handle withdrawal request of anyone, any user, so no insolvency risk.

Your question is very misleading and confusing. Cryptocurrency owner or cryptocurrency founder, what do you mean?

As a cryptocurrency owner, you are not providing any service and won't become insolvent. You only face with risk of loss your capital because the cryptocurrency you invest in turns to 0 in value and nobody trades it on exchange.

As a cryptocurrency founder, especially if you are running an exchange (CEX or DEX), you are responsible for solvency or insolvency for your users.

Example is FTX exchange, which filed bankruptcy after it became insolvent.
https://www.coindesk.com/policy/2022/11/11/ftx-files-for-bankruptcy-protections-in-us/

[Mauser]

People with bank accounts can be bankrupt and insolvent but with the “cryptocurrencies things were different”

So what’s your opinion on this let’s discuss together!

Being insolvent usually means that we don't have any money left to pay our bills. In my opinion this would also include crypto currencies. Depending on how important the bills are we should convert our crypto coins to fiat to pay the bills. Imagine we can't pay our electricity or heating bills, or even worse we are getting kicked out of apartment because we can't pay the rent. What good do our crypto coins if we are living on the street. Bankruptcy is usually a legal term that is used do try and get debt free after some time. The judge wants to know all our assets and we could try and hide out crypto coins from the debtors. But if words get out of our hidden wealth we could face jail time. That's why all our assets needs to be included when going for a debt relief program.