Crypto trading is emerging as a prominent investment avenue within India’s financial landscape. The Indian legal regime has recognized crypto assets as “virtual digital assets” only for limited purposes of taxation and anti-money laundering obligations. The loss of crypto assets following the hack of Indian crypto exchange WazirX, remains an evolving legal controversy, with Indian courts continuing to struggle with the complexities of disputes involving crypto assets. As crypto markets remain largely underregulated globally, crypto platforms engage in regulatory arbitrage by relocating to jurisdictions with favourable legal system, thereby complicating the determination of applicable law, jurisdiction, and the identity of the debtor entity. A review of literature on failed crypto exchanges shows that their collapse is frequently linked to two factors: the absence of regulatory oversight and their susceptibility to cyberattacks. In this context, this paper undertakes a foundational enquiry into the need to adapt the Insolvency and Bankruptcy Code, 2016 to address insolvency proceedings involving crypto platforms. Drawing from comparative regulatory and judicial developments, it examines issues of classification, ownership, valuation, and cross-border implications of crypto assets. We contend that crypto assets qualify as “property” under the IBC and that targeted statutory interventions are essential to safeguard crypto exchange users’ rights in the event of insolvency.