Source: LawFuel

 
LawFuel reports on Bitkub Online Co. Ltd.’s successful defense in a landmark cryptocurrency fraud case heard by the English High Court. The case, D’Aloia v Persons Unknown and Others, revolved around an alleged cryptocurrency fraud where the claimant, Mr. D’Aloia, transferred £2.5 million in USDT (Tether) to fraudsters. Bitkub, a leading Thai cryptocurrency exchange, was among several defendants accused of facilitating the unauthorized transfers of the stolen funds through various crypto wallets.

In his ruling, Deputy High Court Judge Richard Farnhill found that Bitkub was not liable, as the claimant failed to prove that the stolen USDT could be traced to a wallet controlled by the company. The judgment also addressed the broader question of whether cryptocurrencies like USDT are regarded as property under English law. Judge Farnhill concluded that cryptocurrencies, while neither a “chose in action” nor a “chose in possession,” are capable of attracting property rights, marking a significant legal development for digital assets.

The ruling provides clarity on the legal status of cryptocurrencies in the UK, affirming that they can be considered property under certain conditions. It also sets a precedent for how courts may treat crypto-related fraud cases in the future, particularly regarding the tracing of assets across multiple wallets and exchanges.