Watson Farley & Williams (“WFW”), working together with Quillon Law LLP, advised market leading Thai cryptocurrency exchange, Bitkub Online Co Ltd (“Bitkub”) on its successful defence of an English Court claim regarding alleged cryptocurrency fraud. The judgment of D’Aloia v Persons Unknown & Others from a Deputy High Court Judge of the Chancery Division provides a landmark finding that USDT, a form of cryptocurrency, attracts property rights under English law.
The Claimant, Mr D’Aloia, was induced to transfer approximately £2.5m in USDT by alleged fraudsters and thereafter sought recovery against defendants including both said fraudsters and various cryptocurrency exchanges whose platforms the USDT was alleged to have passed through. The case against Bitkub was the only one that proceeded to a full trial.
In a lengthy judgment, Judge Farnhill held that Bitkub was not liable, as the claimant had failed to demonstrate that the USDT could be traced or followed to a cryptocurrency wallet held by Bitkub.
In relation to the question of whether cryptocurrencies are considered property under English law Judge Farnhill’s landmark conclusion – the first time ever in a full trial – was that “USDT, while neither a chose in possession nor a chose in action, is capable of attracting property rights for the purposes of English law”.
The WFW Bangkok Dispute Resolution team that advised Bitkub was led by Partner Tossaporn Sumpiputtanadacha, supported by Senior Associate Molthida Songcharoen and Associates Theo Cleminson, Stefanos Molyndris, Nathanicha Zhairngoow and Chanya Punjasanontachai.
Tossaporn commented: “WFW’s dispute resolution lawyers in Thailand and across Asia Pacific are uniquely placed to provide both first rate local law advice and real expertise in English law disputes, international litigation, in collaboration with appropriate local lawyers, and arbitration. We are delighted to have helped Bitkub and its dedicated and highly professional legal team achieve a second positive result in the English Courts, having successfully helped end a separate English Court proceeding against them last year in collaboration with our London Disputes Team”.
You can read an in-depth analysis of the judgment, the reasoning behind and its implications here.
The full Judgment can be read here.
