Cryptocurrency Action
The claimants sought damages and other remedies saying that the unknown defendants had obtained access to the private key guarding their crypto currency assets, and then sold them at an undervalue, acquiring substantial profits for themselves in subsequent unknown transactions. The Court considered the nature in law of such systems, and preliminary injunctive without notice relief.
Held: The orders were made. There were potential causes in action based upon breach of confidence, unjust enrichment and is entitled also to maintain an equitable proprietary claim based upon constructive trust in respect of assets which have been removed from it dishonestly and without its licence or consent. The assets, both the private encryption keys and the cryptocurrency were property. The private keys in their nature attracted protection in the law of confidence.
The issues raised were arguably triable within this jurisdiction
Pelling QC HHJ
[2021] EWHC 2254 (Comm)
Bailii
The Trade Secrets (Enforcement, etc) Regulations 2018, Rome II Convention
England and Wales
Citing:
Cited – Shenzhen Senior Technology Material Co Ltd v Celgard Llc CA 9-Oct-2020
. .
Cited – Adams v Cape Industries plc CA 2-Jan-1990
Proper Use of Corporate Entity to Protect Owner
The defendant was an English company and head of a group engaged in mining asbestos in South Africa. A wholly owned English subsidiary was the worldwide marketing body, which protested the jurisdiction of the United States Federal District Court in . .
Adopted – Ion Science v Persons Unknown 21-Dec-2020
Butcher J said that the ‘. . lex situs of a cryptoasset is the place where the person or company who owns it is domiciled. . . There is apparently no decided case in relation to the lex situs for a cryptoasset. Nevertheless, I am satisfied that . .
Cited – Westdeutsche Landesbank Girozentrale v Islington London Borough Council HL 22-May-1996
Simple interest only on rate swap damages
The bank had paid money to the local authority under a contract which turned out to be ultra vires and void. The question was whether, in addition to ordering the repayment of the money to the bank on unjust enrichment principles, the court could . .
Cited – Banker’s Trust v Shapira CA 1980
Enforcement through innocent third party bank
Two forged cheques, each for USD500,000, had been presented by two men and as a result USD1,000,000 had been transferred to accounts in their names. The plaintiff sought to trace assets through the banks involved.
Held: The court approved the . .
Cited – AB Bank Ltd, Off-Shore Banking Unit (Obu) v Abu Dhabi Commercial Bank Pjsc ComC 12-Aug-2016
Application to set aside Norwich Pharmacal Order: ‘The application raises the question whether the court has jurisdiction to permit service out of the jurisdiction of an application for the grant of a Norwich Pharmacal Order.’
Held: An order . .
Cited – Kryiakou v Christie’s QBD 2017
Warby J summarised the five criteria for the grant of a bankers Trust order: there must be good grounds for concluding that the money or assets about which information is sought belonged to the claimant.
whether there is a real prospect that . .
Cited – Ion Science v Persons Unknown 21-Dec-2020
Butcher J said that the ‘. . lex situs of a cryptoasset is the place where the person or company who owns it is domiciled. . . There is apparently no decided case in relation to the lex situs for a cryptoasset. Nevertheless, I am satisfied that . .
Cited – Mitsui and Co Ltd v Nexen Petroleum UK Ltd ChD 29-Apr-2005
Mitsui sought disclosure of documents from a third party under the rules in Norwich Pharmacal.
Held: Such relief was available ‘where the claimant requires the disclosure of crucial information in order to be able to bring its claim or where . .
Cited – Russian Commercial Bank (Cyprus) Ltd v Khoroshilov ComC 12-May-2020
Before an alternative service order can be made, the court must be satisfied that there are special or exceptional circumstances for departing from the machinery which the Convention adopts for its signatory countries. . .
Lists of cited by and citing cases may be incomplete.
Torts – Other, Banking
Updated: 11 November 2021; Ref: scu.667410