# kaal:claim:2998033-011

**Claim.** Managers of funds that exist only as smart contracts in cyberspace, with no foreign or domestic domicile, cannot assume they are judgment proof; the more likely outcome is that they must comply with more regulations, not fewer, because every node location can trigger a jurisdiction.

**Type.** failure  **Support.** argued

**Holds when.**

- applies to funds constituted entirely through smart contracts on a public blockchain such as Ethereum

**Source quote.**

> However, managers cannot assume that they are judgment-proof. Instead, fund managers may be required to comply with more regulations not fewer.

**From.** Wulf A. Kaal, *Blockchain Innovation for Private Investment Funds* (2017), II.5. Regulatory Implications, page 15

**Cite as.** Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033

**Verify.** sha256 of source PDF `aafb1be3c25cd33da477d759df9ca2f856f0a8fe133d6396da2e75d0af573dbd` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202017%20-%20Blockchain%20Innovation%20for%20Private%20Investment%20Funds.pdf

**Failure mode.** false-judgment-proof-assumption  (family: legal-personality-and-liability-gap)

**Topics.** law-and-legal-systems, smart-contracts, compliance

**Keywords.** domicile, jurisdiction, fund-regulation, smart-contracts, compliance

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3409548-022
- restated_by: https://wulfkaal.github.io/claims/3409548-021

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.