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ARTICLE · 17 JANUARY 2020

Freezing Of Cryptocurrencies In Fraud

The question of whether cryptocurrencies constitute property was considered by the British Columbia Supreme Court in the 2018 case of Copytrack Pte Ltd v Wall

CanadaTechnology

The question of whether cryptocurrencies constitute property was considered by the British Columbia Supreme Court in the 2018 case of Copytrack Pte Ltd v Wall as we described in a previous legal update. While the court was not prepared to determine that cryptocurrencies are “goods” and therefore open to claims in wrongful detention and conversion, it held that cryptocurrency is sufficiently “property” as to be subject to orders for tracing and recovery.

While the Copytrack decision was a significant development in the law, the question of whether cryptocurrency may be subject to freezing orders in instances of fraud remains uncertain. However, recent decisions from the United Kingdom and Singapore may provide a path for such a legal development to occur in Canada.

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