Proprietary Injunction Against A Crypto-exchange? Not So Fast…

Jahangir Piroozzadeh v Persons Unknown et al [2023] EWHC 1024 (Ch) (Piroozzadeh) is the first reported decision in which freezing injunctions relating to misappropriation of crypto-assets initially granted on a without notice basis have been discharged by the High Court on their return date (i.e. on the date the parties return to the court, all defendants having been given notice, for the purposes of arguing the substantive merits of the application and the continuation of the initial orders). The particular defendant that successfully had the freezing injunction against it discharged was the crypto-asset exchange Binance Holdings Limited (Binance), which the claimant alleged was a constructive trustee of the misappropriated Tether (or its proceeds), and on that basis liable to account to the claimant as beneficiary.