Economou & Co LLC, together with leading counsel Marcos Dracos KC, successfully represented eight defendants in the first major case before the Cypriot Courts involving crypto tokenization in commodity trading.

The claimants had obtained an ex-parte freezing order against several defendants. Following full adjudication, the District Court of Limassol dismissed the application and discharged the freezing order, concluding that no prima facie cause of action had been established. In its judgment, the Court accepted the defendants’ submissions in that the claimants’ allegations were mostly unsubstantiated and, among others, based on multiple layers of hearsay.

The judgment stands out for several reasons:

Ultimately, the Court concluded that no cause of action was presented which was neither frivolous nor vexatious.

The judgment constitutes a noteworthy development in the Cypriot courts’ treatment of emerging financial technologies, while it highlights the necessity of adequate evidential substance in Mareva applications. The Court’s detailed analysis of both factual and legal issues offers valuable guidance for future disputes involving crypto-finance structures.