Valuing a crypto exchange in a high-stakes shareholder dispute

When a shareholder dispute reached arbitration in Hong Kong, Osborne Partners was engaged to assess the value of a leading global crypto exchange. There were billions of dollars at stake, and with the industry facing regulatory and political headwinds worldwide, the challenge was to produce a credible valuation in one of the most uncertain sectors of the global economy.

Expert:

Chris Osborne

James Searby

Charles Larminie

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Investigate

The dispute concerned access to shares in the exchange, with the claimant seeking compensation equal to their value. Our task was to determine what those shares were worth. That began with a close review of the opposing expert’s report and a deep dive into the fundamentals of the crypto industry, from market trends and business models to the risks shaping the sector’s future. Because the exchange operated across multiple jurisdictions, each with its own stance on crypto trading, we also had to consider the impact of overlapping regulatory investigations in the UK, U.S., Europe and beyond.

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Evaluate

Putting a number on a business in such a fast-moving and opaque market meant looking beyond a more typical approach. Instead, we tested the assumptions behind conventional methods, identifying the true drivers of value for a crypto exchange and stress-testing how they might evolve over time. Key to this was accounting for sector-specific risks such as volatile market sentiment, political scrutiny and the potential for sweeping regulatory change. With just five weeks to prepare our analysis, we framed a clear thesis on the exchange’s future outlook, balancing near-term pressures with long-term opportunities.

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Communicate

We set out our conclusions in a detailed expert report filed in the arbitration. The report presented a clear valuation framework, explained the assumptions and sensitivities driving the result and provided the legal team with a structured basis for advancing its case and responding to the opposing expert evidence as the proceedings continue.

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Service

Disputes

We provide expert analysis and testimony in high-value litigation and arbitration, covering everything from expropriation and shareholder disputes to complex competition and regulatory cases.

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Expert

Chris Osborne

Managing Director

Our Managing Director, Chris, brings decades of experience leading expert analysis in high-value disputes and regulatory matters worldwide.

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Expert

James Searby

Affiliate Partner

James is an Affiliate Partner who specialises in quantum assessment in high-value disputes, with extensive testifying experience across global jurisdictions.

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