Former Bitwise Industries president, Bethany Mily, is refusing to hand over her company-issued laptop computer to the court-appointed trustee overseeing the company’s bankruptcy case in Delaware.
Mily’s legal counsel claims that the laptop may contain information subject to attorney-client privilege.
Driving the news: The bankruptcy trustee, Jeoffrey Burtch, responded to Mily’s request to seek coverage under a $5 million business insurance policy purchased by Bitwise prior to its collapse.
- Burtch wants access to Mily’s laptop as part of the investigation into the factors that led to Bitwise’s demise and to identify any available assets to satisfy the companies’ debts.
- Burtch argues that the company-issued laptop remains the property of the Bitwise bankruptcy estate and that Mily is required to deliver it to the trustee.
- Burtch is willing to accept the computer under a court order that clarifies the handover does not waive attorney-client privilege for Mily.
The backstory: According to Bitwise’s employee handbook, Mily should not have expected that information on the laptop would be kept private, as she was specifically advised that it was not.
- Multiple sources have confirmed that state and federal agencies, including the FBI, are investigating possible wrongdoing related to the financial meltdown of Bitwise.
- Bitwise Industries and four other associated entities have stated liabilities of over $511 million, along with additional claims totaling $25.5 million from creditors.