The claimant, an Italian engineer who started the online gaming company Microgaming, filed a lawsuit against five cryptocurrency exchanges: Binance, Poloniex, Gate.io, OKEx, and Bitcube. Claimant says that some digital assets, called “stablecoins,” that are tied to the US dollar were used in the wrong way. The application is based on the claim that a “person unknown” used the claimant’s cryptocurrency to run a fake online brokerage that tricked users into putting their crypto assets into stolen digital wallets instead of making trades as requested.
Most of the defendants were located outside of the Court’s area of authority, but two of them were able to provide service through “airdrops” of NFT into digital wallets where the claimants put their cryptocurrencies.
Mr. Justice Trover said that the Court would let this kind of service go through because it would make it more likely that the people behind it knew what was going on. Because of the problems that would happen otherwise and the problems that come with serving unknown people, there was good reason to let service be done in this way. The email was also used to ask for the service.
The ruling said that the five cryptocurrency exchange defendants held Claimant’s identified cryptocurrency as “constructive trustees.” This was a big step forward in recognizing that victims of crypto asset fraud can get fair help to get their assets back and in recognizing that victims of crypto asset fraud can get fair help to get their assets back.
What’s the next step?
Courts in England and Wales used to let people use electronic methods like social media and email to take part in proceedings. This is the first time, though, that a claimant has been allowed to use blockchain for proceedings. This new technology is a solution for when traditional ways of service aren’t possible because of how quickly Partisan Aadhaar claims are made or when dealing with unknown people whose general contact information is hard to find.
When victims try to find the people who owe them money, the contact information on fraudulent sites is often taken down. The ruling gives victims of crypto asset fraud a way to get their money back from people they don’t know who stole their coins. The promise of digital services based on the blockchain is clear.