Retrieving Stolen Crypto In The UK Has Never Been Easier

• Published date: 06 February 2023
• Subject Matter: Technology, Fin Tech
• Law Firm: Quastels
• Author: Mr Robert Kay

The legal grey zones in cryptocurrencies have been an underlying concern for investors and the public. The struggle to regulate cryptocurrencies exposes crypto owners to risk of theft by cybercriminals, with a record of approximately $3 billion worth of cryptocurrency being stolen in 2022.

With over 2 million people in the UK who are possessing and using cryptocurrency, the UK legal system is trying to catch up. Crypto theft victims can now seek to recover their lost assets through the legal proceedings via the civil courts.In this article, we will discuss the recent two High Court cases demonstrating the ability of the Courts in England and Wales to flexibly apply the law to issues arising out of crypto asset transactions.

IF YOU CAN TRACE BACK YOUR CRYPTO YOU CAN KEEP IT

In Jones v Persons Unknown [2022] EWHC 2543 (Comm), the Claimant had been fraudulently convinced to transfer 89.61616088 in Bitcoins to a fake crypto-investment platform. His Bitcoins were traced to a wallet associated with the company Huobi, a Seychelles-based cryptocurrency exchange. A worldwide freezing injunction was obtained against the persons unknown and a proprietary injunction against Huobi.

Due to the complexity of the Defendants in this case, it is helpful to set out who they are individually:

• First Defendant (Persons...