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ARTICLE · 06 FEBRUARY 2020

Freezing Of Cryptocurrencies In Fraud: Part 2

In AA v Persons Unknown [2019] EWHC 3556 (Comm) the English High Court has granted a proprietary injunction over bitcoins used as a ransom payment in cyber extortion.

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In AA v Persons Unknown [2019] EWHC 3556 (Comm) the English High Court has granted a proprietary injunction over bitcoins used as a ransom payment in cyber extortion. This decision, in addition to those discussed in our previous legal update, further supports that cryptocurrencies can legally constitute "property" for the purposes of proprietary injunctions and freezing orders.

An English insurer brought an application under a request for anonymity in response to one of its customers being the victim of cyber extortion. The application identified four defendants: an unknown party that demanded the ransom in bitcoin, an unknown party that controls this bitcoin, and two parties that operate the bittrex.com cryptocurrency exchange where the ransom was held.

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