Case Note: Structuring an Exit in a High-Stakes Cryptocurrency Partnership
The Situation
Two partners were co-owners of a cryptocurrency exchange. The partnership was informal, with no written structure or governance in place. Disagreements between the partners were escalating, threatening not only their relationship but also the ongoing operation of the business. Both partners were based abroad, and the lack of formal documentation made resolution complicated.
The company needed a solution that would stabilize operations and remain attractive to potential investors while resolving the personal and financial disputes between the partners.
The Strategy
I was retained as a mediator/advisor to guide the parties toward an enforceable and mutually agreeable resolution. The approach focused on understanding the interests and priorities of each partner, explaining the legal frameworks and risks they would face absent a structured agreement, and translating informal expectations into clear, enforceable terms.
Key elements of the strategy included:
Encouraging both sides to consider fair outcomes rather than short-term advantage
Structuring the agreement under New York law, with arbitration provisions, to provide a familiar and investor-friendly framework
Designing an exit structure for one partner that would be orderly, enforceable, and consistent with the company’s ongoing operations
Through careful negotiation, both partners were able to reach an agreement that protected their individual interests and the company’s future. Documents reflecting the arrangement were drafted, reviewed, and executed, giving the partners clarity and enforceable rights.
The Outcome
The exit of one partner was completed smoothly, allowing them to leave on mutually acceptable terms. The remaining partner continued to operate the business without obstruction, and the company was positioned to attract investment under a clean and clearly documented structure. Both sides left the process with confidence in the fairness and enforceability of the agreement.
The Takeaway
Even highly informal partnerships can benefit from structured agreements, especially when disputes threaten the business or its growth. Mediation combined with careful legal structuring can produce enforceable outcomes without litigation, preserving both relationships and operational continuity.
Advisory Note
When co-owners or partners are in conflict, early intervention through mediation and formalized agreements can prevent disputes from escalating. Consider not only the immediate resolution but also how governance, law, and enforceability will affect the business’s long-term viability and attractiveness to investors.
