The Bitcoin sub-fund was incorporated as a Bermuda exempted company and is registered as a segregatedaccount company receiving funds at Citibank London.
Although, the Court acknowledged that he did a good job using Quickbooks to track his expenses, he did not have an account that segregated his horse business.
In a bankruptcy filing in the U.S. (think Refco), segregated futures accounts have seniority over other creditors and equity holders, so futures account holders get paid first.