Crypto special purpose trusts

Full transcript

0:11 I’m Max Dilendorf. I’ve been working with clients in the crypto space since 2017, helping them with estate planning, asset protection, and navigating the legal fallout of crypto theft.

0:27 Over the years, I’ve also represented clients in more than a hundred arbitration cases involving stolen digital assets, so I’ve seen firsthand the risks that come with crypto exchanges and self-custody wallets. Cybercrime in the U.S. is at an all-time high—over $12 billion in crypto losses were reported in 2024. Once funds are stolen, recovery is often very difficult; if not impossible. That’s why at Dilendorf Law Firm, we designed a structure specifically for our crypto clients: the Crypto Special Purpose Trust.

1:05 This is a Revocable Living Trust built for digital assets.

1:10 It provides a legal framework around your Bitcoin, Ethereum, or other tokens, and places them under the custody of a licensed professional trust company either in the U.S. or Switzerland.

1:25 Instead of leaving assets vulnerable on an exchange or a hardware wallet, clients gain institutional-grade protection with cold storage and multi-layer security protocols.

1:38 One of the biggest advantages of this trust is its flexibility.

1:43 You can appoint multiple co-trustees which is perfect for couples, business partners, or families. For example, if a husband and wife manage their crypto together as co-trustees and one passes away, there’s no probate or court delays.

2:03 The surviving trustee takes over the trust management. This ensures clarity for heirs and continuity for the family. We’re seeing more families, high-net-worth individuals and tech founders adopt these trusts. The process usually takes two to three weeks. When offshore custodians are involved, the process generally extends to three to six weeks. Our team handles the setup from start to finish—drafting the trust, coordinating with custodians, ensuring tax compliance, and making sure it aligns with broader estate and asset protection goals.

2:44 And these trusts aren’t only about security. They can help streamline succession planning, provide tax efficiencies, and ensure compliance with U.S. rules from the IRS and FinCEN.

2:58 For cross-border clients, we often combine these structures with offshore planning, such as Cayman or Cook Islands trusts, for an additional layer of protection.

3:09 Whether you’re holding hundreds of thousands or millions in crypto, this structure can be tailored to secure your wealth and protect your legacy. If you’d like to learn more about Crypto Special Purpose Trusts—or strategies for crypto asset protection and estate planning—contact us at Dilendorf Law Firm. We represent crypto clients nationwide and can help you assess whether this type of planning is the right solution for your needs.

3:38 You can contact us by email at info@dilendorf.com or call us 212.457.9797.

3:48 Thank you for watching and I will see you in next episode.

A transcript of the recording, so it reads as speech rather than as prose. It explains the law in general terms and is not advice on your own situation, which turns on facts this video cannot know.