In a hearing on Feb. 26, the Moscow Arbitration Courts, the local media group RBC reports.

The court considered an application filed by Aleksey Leonov, who asked permission to recover funds from a debtor, Ilya Tsarkov, by seizing Tsarkov's crypto assets. According to RBC, Leonov requested that the court require Tsarkov to provide the password for his cryptocurrency wallet on the website Blockchain.info.

The court reviewed documents that proved Tsarkov was in possession of a crypto wallet with Bitcoins, but To grant Nikola Kulikov, executive director of the Moscow law firm HEADS Consulting, the court of the United States of America

"If the court had included cryptocurrency assets in the state of insolvency, that would have meant that a law of money, which is contrary to the Central Bank's stanza, or as a property, which is not established by the law, "said Kulikov.

Leonov disagreed, stating that despite the murky lega the status of cryptocurrencies in Russia, there is no reason for it to be included in the group of assets which can be seized by a creditor. Leonov added that the precedent set by the court could result in an "outflow of assets" in future debt arbitration cases.

As previously reported by Cointelegraph, ICOs, and cryptocurrency exchanges by July, 2018.