Court of Chancery Rejects Fiduciary Duty and Veil-Piercing Theories in Crypto Case
ma-litigation.sidley.com
A Delaware crypto case just tested whether classic corporate law shields — fiduciary duty and veil-piercing — can hold up in the wild west of digital assets, and the Court of Chancery said yes.
Fiduciary DutyVeil-Piercing DoctrinePrincipal-Agent ProblemCorporate Governance Theory
Theory Briefing
- DMA, a Delaware corporation, issued crypto assets and faced claims of fiduciary breach — the court rejected the theory, reaffirming limits on when such duties arise.
- Plaintiffs tried to pierce the corporate veil to reach individual defendants, but the court refused, showing blockchain ventures still live inside traditional corporate structures.
- The ruling is a landmark signal that legacy principal-agent and entity-separation doctrines govern crypto firms just as they do conventional corporations.