The Russian appeal court has decided to include cryptocurrency, belonging to the bankrupt individual, into the bankruptcy assets and ordered the defendant to pass his keys and passwords from his wallets to the bankruptcy supervisor.

The Ninth Arbitration Court of Appeal of Russia ordered the bankruptcy trustee to have access to cryptowallets and cryptocurrency, which can be included in the bankruptcy assets. Thus, the Russian court for the first time recognized the cryptocurrency as property, reports RBC citing bankruptcy supervisor Alexey Leonov, who acted as a plaintiff.

The defendant was Ilya Tsarkov, who was declared bankrupt individual in October 2017. Tsarkov owes more than 18 million rubles to one Russian company under a contract of guarantee.

Tsarkov himself told Leonov about his investments in cryptocurrencies and said that he stores his bitcoins on

In February, the Arbitration Court of Moscow refused to include the cryptocurrency in the bankruptcy assets, motivating its decision by the fact that there is no cryptocurrency regulation in Russia, thus it is impossible to say yet whether the digital currency is an asset, stack of information or money surrogate.