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A High Court decision in Ion Science Ltd and Duncan Johns v Persons Unknown, Binance Holdings Limited and Payward Limited might assist victims of fraud to recover stolen cryptocurrency and other digital assets
1 minute read
Published 23 April 2021
The largely unregulated nature of the cryptocurrency space has, on occasion, made it a target for fraudsters. However, a recent High Court decision might assist victims to recover stolen cryptocurrency and other digital assets.
The Claimants had been induced to transfer large sums of Bitcoin, in the belief that they were making legitimate investments. The Bitcoin was then dissipated by the recipient fraudsters through various cryptocurrency exchanges, including Binance and Kraken.
The Claimants made an ex parte application, seeking:
The Court granted all orders sought by the Claimants. This is the first time that an English Court has ordered a cryptocurrency exchange outside of the UK to make disclosures of this nature in question. The Court held that, in the eyes of the law, the lex situs (i.e. location) of a cryptoasset is the place where its owner is domiciled. The fraud was therefore deemed to have occurred within the English Court’s jurisdiction.
The case is ongoing.
Related content
Shorter Reads
A High Court decision in Ion Science Ltd and Duncan Johns v Persons Unknown, Binance Holdings Limited and Payward Limited might assist victims of fraud to recover stolen cryptocurrency and other digital assets
Published 23 April 2021
The largely unregulated nature of the cryptocurrency space has, on occasion, made it a target for fraudsters. However, a recent High Court decision might assist victims to recover stolen cryptocurrency and other digital assets.
The Claimants had been induced to transfer large sums of Bitcoin, in the belief that they were making legitimate investments. The Bitcoin was then dissipated by the recipient fraudsters through various cryptocurrency exchanges, including Binance and Kraken.
The Claimants made an ex parte application, seeking:
The Court granted all orders sought by the Claimants. This is the first time that an English Court has ordered a cryptocurrency exchange outside of the UK to make disclosures of this nature in question. The Court held that, in the eyes of the law, the lex situs (i.e. location) of a cryptoasset is the place where its owner is domiciled. The fraud was therefore deemed to have occurred within the English Court’s jurisdiction.
The case is ongoing.
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Specialising in Commercial disputes, Banking & financial disputes, Commercial arbitration and Digital
Partner - Head of Dispute Resolution Services
Specialising in Banking & financial disputes, Commercial disputes, Corporate recovery, restructuring & insolvency, Digital and Personal insolvency
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