The U.S. Department of Justice (DOJ) is making substantial changes to how it handles restitution for victims of cryptocurrency theft, in response to ongoing debates about the fairness of fixed-date compensation. This overhaul comes amid significant market volatility and criticisms of the current system’s reliance on pre-loss asset values. Previously, victims received payouts based on the fluctuating price of their assets at the time of loss, a method that has been criticized for its lack of consideration for market fluctuations and the potential for undercompensation after losses. This new approach, while still evolving, seeks to address these concerns by potentially offering more direct returns of original cryptocurrency to victims. The impact of recent high-profile bankruptcies like FTX, Celsius, and Voyager is a key factor driving this shift. While the recent FTX bankruptcy saw compensation using fixed USD equivalents, many affected investors are now advocating for the return of their cryptocurrencies. This approach has reignited the debate around the volatility of cryptocurrency markets. Legal experts are urging for greater flexibility in how compensation is handled, emphasizing the need for judges to have more discretion in determining appropriate compensation measures. Attorneys Calvin Koo and Evelyn Baltodano Sheehan highlight this demand for greater judicial control, as they point out the current system risks disadvantaging some victims while favoring others. Additionally, over 300 victims have filed formal complaints about their fixed valuation losses, further solidifying the need for change. As the DOJ undertakes this review, it’s clear that the conversation surrounding restitution for victims of digital asset theft is poised to reshape legal practices and policies in the cryptocurrency landscape.